PROJECT MANAGEMENT
Module Guide
Copyright © 2023
MANCOSA
All rights reserved; no part of this book may be reproduced in any form or by any means, including photocopying machines,
without the written permission of the publisher. Please report all errors and omissions to the following email address:
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This Module Guide,
Project Management (NQF level 7),
will be used across the following programmes:
•
Advanced Diploma in Business Management
•
Bachelor of Business Administration
PROJECT MANAGEMENT
Preface.................................................................................................................................................................... 3
Unit 1: Introduction to Project Management ............................................................................................................ 9
Unit 2: Constraints and Potential Project Resource Problems in a Project Environment ...................................... 30
Unit 3: Project Life Cycle and Tools and Techniques used at Different Project Stages ........................................ 39
Unit 4: Project Management Tools and Techniques ............................................................................................. 53
Unit 5: Communication and Risk Management Tools and Techniques in a Project Management Environment ... 69
Unit 6: Leadership Teams and Stakeholder Management .................................................................................... 82
Unit 7: Quality in Project Management ................................................................................................................ 101
Unit 8: Project Integration Management .............................................................................................................. 109
References.......................................................................................................................................................... 119
Bibliography ........................................................................................................................................................ 120
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Project Management
List of Contents
List of Tables
Table 1: Differentiating the functions of a General Manager and a Project Manager ....................................... 18
Table 2: Project Management Tools and Techniques by Knowledge Area ...................................................... 45
Table 3: Template of a Petty Cash Voucher ..................................................................................................... 46
Table 4: Network Computation Process ........................................................................................................... 63
Table 5: Communication Plan ........................................................................................................................... 73
Table 6: Risk Tabulation ................................................................................................................................... 77
Table 7: Quality Assurance Process ............................................................................................................... 105
Table 8: Quality Planning Process .................................................................................................................. 105
List of Figures and Illustrations
Figure 1: Project Charter................................................................................................................................... 15
Figure 2: Hierarchy of Portfolio, Programme and Projects................................................................................ 16
Figure 3: Triangular representation the relationship between projects, programmes and portfolio .................. 17
Figure 4: Project Screening Matrix:................................................................................................................... 20
Figure 5: Functional Organisational Structure .................................................................................................. 22
Figure 6: Projectised Organisational Structure ................................................................................................. 23
Figure 7: Matrix Organisational Structure ......................................................................................................... 24
Figure 8: Quadruple Constraints ....................................................................................................................... 33
Figure 9: The Project Life Cycle........................................................................................................................ 43
Figure 10: A Milestone Chart ............................................................................................................................ 48
Figure 11: A Gantt chart showing a project to construct a new house .............................................................. 56
Figure 12: Gantt Chart of a Survey on Job Satisfaction .................................................................................... 57
Figure 13: A Work Breakdown Structure of a House ........................................................................................ 58
Figure 14: Network Diagram: Activity on Node ................................................................................................. 59
Figure 15: Illustration of a merge activity Source: Larson and Gray (2014) ...................................................... 60
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Figure 16: Critical Path Source: Larson and Gray (2014) ................................................................................. 60
Figure 17: Illustration of a Burst activity: Source: Larson and Gray (2014) ....................................................... 61
Figure 18: Precedence Source: Larson and Gray (2014) ................................................................................. 61
Figure 19: Merge and burst activities Source: Larson and Gray (2014) ........................................................... 62
Figure 20: Information for creating a network ................................................................................................... 64
Figure 21: Illustration of a forward pass ............................................................................................................ 64
Figure 22: Illustration of a backward pass: Source: Larson and Gray (2014) .................................................. 65
Figure 23: Forward and backward passes completed ...................................................................................... 65
Figure 24: Risk Impact Matrix ........................................................................................................................... 76
Figure 25: Risk Management Cycle .................................................................................................................. 78
Figure 26: Leading By Example ........................................................................................................................ 88
Figure 27: The Stakeholder Management Process .......................................................................................... 94
Figure 28: Overview of Project Quality Management...................................................................................... 106
Figure 29: The seven stages of project integration ......................................................................................... 112
Figure 30: Integrated management of projects ............................................................................................... 113
Figure 31: The Technical and Socio-cultural Dimensions of the Project Management Process ..................... 114
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Preface
A.
Welcome
Dear Student
It is a great pleasure to welcome you to Project Management (PMT7). To make sure that you share our passion
about this area of study, we encourage you to read this overview thoroughly. Refer to it as often as you need to
since it will certainly make studying this module a lot easier. The intention of this module is to develop both your
confidence and proficiency in this module.
The field of Project Management is extremely dynamic and challenging. The learning content, activities and selfstudy questions contained in this guide will therefore provide you with opportunities to explore the latest
developments in this field and help you to learn Project Management as it is practiced today.
The content covered in this module starts from defining what a project is to project closure. This broad coverage
will provide you with the necessary skills to articulate to the next levels with reasonable ease. It is written in
accessible language accompanied with simple illustrations and examples to facilitate learning. At the end of this
module, you should be able to utilise project management tools and implement projects irrespective of scale –
large or small - the principles remain the same. As you read this module, take down some notes and highlight
important concepts. It is advisable to attempt all the examples. It intuitively true that practice makes perfect.
This is a distance-learning module. Since you do not have a tutor standing next to you while you study, you need
to apply self-discipline. You will have the opportunity to collaborate with each other via social media tools. Your
study skills will include self-direction and responsibility. However, you will gain a lot from the experience! These
study skills will contribute to your life skills, which will help you to succeed in all areas of life.
We hope you enjoy the module.
MANCOSA does not own or purport to own, unless explicitly stated otherwise, any intellectual property rights in or
to multimedia used or provided in this module guide. Such multimedia is copyrighted by the respective creators
thereto and used by MANCOSA for educational purposes only. Should you wish to use copyrighted material from
this guide for purposes of your own that extend beyond fair dealing/use, you must obtain permission from the
copyright owner.
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B.
Module Overview
The purpose of the course is to provide you with the basic tools, techniques and methodologies of project
management for you to be able to understand how they can be used effectively to execute projects and to complete
such projects successfully to the satisfaction of the customer. The principles and theories that underpin Project
Management derive mainly from the discipline of Management. This module fits in the programme because it is
cross-cutting and leverages the synergies generated by the other modules. As such, this module was designed to
engage you so that you can think critically about the application of project management in both theory and practice
in society. The course offers an overview of project management and its applicability to the South African, African
and global context. By adopting such an approach, it intends to tap on the wealth of old experiences while benefiting
from new developments in the discipline with both a local and global perspective in its evolution.
The content covered in this module starts from defining what a project is to project closure. This broad coverage
will provide you with the necessary skills to articulate to the next levels with reasonable ease. It is written in
accessible language accompanied with simple illustrations and examples to facilitate learning. At the end of this
module, you should be able to utilise project management tools and implement projects irrespective of scale –
large or small - the principles remain the same. As you read this module, take down some notes and highlight
important concepts. It is advisable to attempt all the examples. Intuitively true that practice makes perfect. It is the
anticipation that this module will enhance your employability chances in a spectrum of disciplines in Project
management. The module is a 15 credit module pitched at NQF level 7
C.
Learning Outcomes and Associated Assessment Criteria of the Module
LEARNING OUTCOMES OF THE MODULE
ASSOCIATED ASSESSMENT CRITERIA OF THE MODULE
•
• Project management concepts and terminologies are
Understand and apply generic project
management concepts and definitions
•
Understand the significance and impact
of and relationship among the
conceptualised for better understanding
• Project management constraints are characterised to
understand their impact on project success
constraints in a project environment
•
Demonstrate an understanding of the
• Project management tools and techniques used in the
use of common tools and techniques
project life cycle are explored to understand how tasks can
used in the different stages of a project
be completed efficiently and effectively
life cycle
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•
Effectively apply common project
• Tools to manage project scope and time are utilised to
management tools and techniques,
ensure successful project completion within project
such as Work Breakdown Structures,
constraints
Gantt charts, Network diagrams and
Critical Path Method, to manage project
scope and time
•
Demonstrate an understanding of
potential project resource problems,
• Project management tools are applied to alleviate potential
resource problems
and apply project tools to alleviate
these problems
•
Apply communication and risk
• Communication and risk management tools are applied to
management tools and techniques in a
project environments to successfully manage stakeholder
project management environment
expectations and uncertain events that may impact project
success
•
Demonstrate an understanding of
• Project management environment and requirements are
leadership expertise required to
examined to understand the required leadership styles and
successfully manage and lead project
theories for project success
teams, and to network with various
project stakeholders
•
Understand project quality concepts,
and apply tools used to monitor and
• Project quality concepts and tools are understood and
applied in order to fulfil inherent project requirements
improve project quality at different
stages of the project life cycle
D.
Learning Outcomes of the Units
You will find the Unit Learning Outcomes on the introductory pages of each Unit in the Module Guide. The Unit
Learning Outcomes lists is an overview of the areas you must demonstrate knowledge in and the practical skills
you must be able to achieve at the end of each Unit lesson in the Module Guide.
E.
How to Use this Module
This Module Guide was compiled to help you work through your units and textbook for this module, by breaking
your studies into manageable parts. The Module Guide gives you extra theory and explanations where necessary,
and so enables you to get the most from your module.
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The purpose of the Module Guide is to allow you the opportunity to integrate the theoretical concepts from the
prescribed textbook and recommended readings. We suggest that you briefly skim read through the entire guide
to get an overview of its contents. At the beginning of each Unit, you will find a list of Learning Outcomes. This
outlines the main points that you should understand when you have completed the Unit/s. Do not attempt to read
and study everything at once. Each study session should be 90 minutes without a break
This module should be studied using the prescribed and recommended textbooks/readings and the relevant
sections of this Module Guide. You must read about the topic that you intend to study in the appropriate section
before you start reading the textbook in detail. Ensure that you make your own notes as you work through both the
textbook and this module. In the event that you do not have the prescribed and recommended textbooks/readings,
you must make use of any other source that deals with the sections in this module. If you want to do further reading,
and want to obtain publications that were used as source documents when we wrote this guide, you should look
at the reference list and the bibliography at the end of the Module Guide. In addition, at the end of each Unit there
may be link to the PowerPoint presentation and other useful reading.
F.
Study Material
The study material for this module includes tutorial letters, programme handbook, this Module Guide, prescribed
textbook which is supplemented by recommended readings. The Module Guide is written based on a prescribed
textbook which is supplemented by recommended readings.
G.
Prescribed / Recommended Readings
The prescribed and recommended readings/textbooks presents a tremendous amount of material in a simple,
easy-to-learn format. You should read ahead during your course. Make a point of it to re-read the learning content
in your module textbook. This will increase your retention of important concepts and skills. You may wish to read
more widely than just the Module Guide and the prescribed and recommended textbooks/readings, the
Bibliography and Reference list provides you with additional reading.
The prescribed and recommended textbooks/readings for this module are:
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project Management. Seventh Edition. Cengage
Learning.
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Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive Advantage. Fourth Edition. Edinburgh:
Pearson Education Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The Management Process. Sixth Edition,
McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of Knowledge. Pennsylvania: Project
Management Institute.
•
Burke, R (2021) Project Management Techniques - Artificial Intelligence. Fourth Edition. Burke
Publishing.
•
Project Management Institute. (2021) A Guide to the Project Management Body of Knowledge
(PMBOK® Guide). Seventh Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive Advantage. Fifth Edition.
Harlow:Pearson.
Larson, E.W. and Gray, C.F. (2020) Project Management: The Management Process. Eight Edition.
McGraw-Hill International.
H.
Special Features
In the Module Guide, you will find the following icons together with a description. These are designed to help you
study. It is imperative that you work through them as they also provide guidelines for examination purposes.
Special Feature
LEARNING OUTCOMES
Icon
Explanation
The Learning Outcomes indicate aspects of the particular
Unit you have to master.
The Associated Assessment Criteria is the evaluation of the
ASSOCIATED
students’ understanding which are aligned to the outcomes.
ASSESSMENT
The Associated Assessment Criteria sets the standard for
CRITERIA
the successful demonstration of the understanding of a
concept or skill.
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A Think Point asks you to stop and think about an issue.
THINK POINT
Sometimes you are asked to apply a concept to your own
experience or to think of an example.
You may come across Activities that ask you to carry out
ACTIVITY
specific tasks. In most cases, there are no right or wrong
answers to these activities. The purpose of the activities is to
give you an opportunity to apply what you have learned.
At this point, you should read the references supplied. If you
READINGS
are unable to acquire the suggested readings, then you are
welcome to consult any current source that deals with the
subject.
PRACTICAL
APPLICATION OR
EXAMPLES
Practical Application or Examples will be discussed to
enhance understanding of this module.
You may come across Knowledge Check Questions at the
KNOWLEDGE CHECK
end of each Unit in the form of Knowledge Check Questions
QUESTIONS
(KCQ’s) that will test your knowledge. You should refer to the
Module Guide or your textbook(s) for the answers.
You may come across Revision Questions that test your
REVISION QUESTIONS
understanding of what you have learned so far. These may
be attempted with the aid of your textbooks, journal articles
and Module Guide.
Case Studies are included in different sections in this Module
CASE STUDY
Guide. This activity provides students with the opportunity to
apply theory to practice.
VIDEO ACTIVITY
8
You may come across links to Videos Activities as well as
instructions on activities to attend to after watching the video.
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Project Management
Unit
1:
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Introduction to Project
Management
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Project Management
Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
1.1 Introduction
•
Introduce topic areas for the unit
1.2 Defining Project Management
•
Discuss the key concepts in project management
1.3 Project Characteristics
•
List and describe the various characteristics of projects
1.4 Importance of Project Management
•
Debate the importance of project management
1.5 The Relationships among
•
Describe the relationship between portfolios, programmes
Portfolios, Programmes, and
and projects
Projects
•
1.6 Relationship Between Project
Compare and contrast project management, general
Management, General
management, operations management and organisational
Management, Operations
strategy
Management, and Organisational
Strategy
1.7 Financial and Non-Financial Project •
Selection Approaches
Discuss the financial and non-financial project selection
approaches
1.8 Forms of Organisational Structure
•
Discuss and illustrate the forms of organisational structures
1.9 Determinants of Project Success
•
Outline the determinants of project success
1.10 Summary
•
Summarise topic areas covered in unit
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
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Project Management
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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1.1
Introduction
In a world that is complex and unpredictable, and where resources are scarce, management is expected to deliver
on its mandate either to produce goods and services or construct dams, roads, bridges, housing complexes,
aeroplanes and so forth within set budgets, quality standards and time frames irrespective of this volatility. This
means that various activities and tasks which have a clear objective have to be executed and completed within
certain parameters as specified by the customer to their satisfaction. Management in general, entails coordinating
and controlling resources in various human endeavours. However, project management is about managing those
activities and tasks (singly or in groups) on a project by project basis. This Unit will define a project and the concept
of project management.
1.2
Defining Project Management
Mankind has undertaken projects since time immemorial. The systematic documentation of best practices
distinguishes current practices from olden times.
A project is any endeavour or activity that consumes time, money (cost), human effort and technology with limits
in terms of scope. Some projects use a lot of technology while others do not. It is clear that projects involve the
use of resources of various types. These resources form the inputs necessary for the execution of a project and
go through a process of transformation. The transformation process leads to a specified output which can be either
a house, a dam, a stadium, an airplane, a book, a poem, a sporting event or a song. All these are examples of
projects with similar characteristics. Project characteristics will be explained in the next section of the module guide.
Projects normally have a start and end date, consume resources and are limited by scope time and costs. The
manner, in which these inputs are combined, will have an impact on the quality of the output. Put simply: A project
is a task or a group of tasks, with a start and end date a budget and a unique outcome. The outcome is in the form
of a product or service. A project is limited by cost, time and performance specifications. It uses a variety of skills
and resources. When implementing a project, certain skills, tools and techniques have to be used and they
distinguish Project Management from General Management.
Management involves planning, organising, leading and coordinating resources. As such Project Management
involves planning, leading, organising, coordinating and controlling of resources within a given timeframe and
budget to achieve a clearly defined objective. There is a strong link between project management and concepts
and theories of management.
Operations of a routine nature are not considered projects as they are repetitive and on-going. A good example is
a production line or a car assembly or selling grocery in a shop. Routine activities which do not have an end date
are not projects. Strictly speaking, projects must have start and end dates. This typically applies to what people
call income generating projects. When these projects continue without an end, they cease to be projects.
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Project Management
Projects must start and end, use resources and have a final outcome. This does not mean that an income
generating project cannot be a project. It has to have the key attributes of a project such as shall be explained in
the next section.
Activity 1
Watch this video on project management for a brief overview.
Explain what is Project Management
https://www.youtube.com/watch?v=9LSnINglkQA
1.3
Project Characteristics
Projects have the following characteristics or attributes:
•
Temporary in nature (with a start and end date)
•
Non-routine
•
Can be complex
•
Limited by time, cost and resources
•
And is intended to meet or exceed the customer’s expectations
Other attributes associated with projects include risk and that a project is usually done on behalf of a customer.
Project Management as a discipline, has its unique qualities.
Below are some examples of projects:
•
Carry out a survey
•
Do a workshop or seminar
•
Create a sculpture
•
Train youths on HIV/AIDS
•
Hold an essay competition
•
Raise awareness on human rights among the youth
•
Raise awareness about the need to pay taxes to the South African revenue services
•
Build a house
•
Build a train, airplane or airport
•
Produce a new drug
We see that a project involves the creation of something that has not been done before. It must be something that
is unique. A housing project may involve new designs which make it unique and different from other projects. A
project may be unique because it involves different owners and different sites.
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Project Scope
In the conceptualisation phase, ideas are explored and the broad idea representing the outcome is clearly defined.
Tentative cost estimates are produced. At this stage, it is critical to have consensus among stakeholders of the
end game of the project particularly its specifications and performance requirements and ensure that, in principle,
it meets the needs of all the stakeholders. A decision is then made whether to continue with the project or not.
The next stage is concerned with designing and planning in which the scope of the project is defined. The outcome
of the project is clearly spelt out and a written scope is produced which specifies the deliverables. A deliverable is
either a product or service.
In essence, the planning of the project begins with the compilation of a budget. Budgeting is made difficult if the
project is huge and complex requiring enormous resources, material, know-how and skills. Only after this stage
will execution begin.
Project Scope is defined as the end result of a project, which is identifiable and measurable and can take the form
of a product or service, which is required by a customer/client. According to Larson and Gray (2014), the purpose
of a Scope Statement is to outline the deliverables of the project for the benefit of stakeholders particularly the
end user. It is also useful in providing a focal point that represents the end goal of the project and is convenient for
planning purposes as well as a tool to measure the success of the project. Project Scope Checklist should contain
Project objective, the milestones, the deliverables, the project technical requirements, the exclusions and limits as
well as the reviews with the customer (Larson and Gray, 2014).
Project Charter
Pinto (2016) observes that after a comprehensive Statement of Work has been produced, a Project Charter is then
developed. A Statement of Work (SOW) is a detailed description of the work to be done on am project.
Typically, a SOW contains the following:
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•
The main objectives of the project
•
A description of the work to be done
•
Expected outcomes
•
Funding
•
Schedule
•
Constraints if any
•
A brief history of the organisation
•
The need for the project
•
The timelines
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Project Management
•
Deliverables
•
Milestones
•
Deliverable schedule; and
•
Place of performance
A Project Charter is the document produced by the sponsor, which formally acknowledges the existence of a
project and gives the project manager the authority to start applying the firm’s resources to execute it. It represents
the firm’s approval that the project should be done and the firm has ascertained its capability and capacity to
execute it. Pinto (2016) notes that, for some organisations, the signing of the SOW constitutes a Project Charter
while for others, a separate document has to be produced. Figure 1 shows an example of a Project Charter.
Figure 1: Project Charter
Source: Project Management Skills (n.d)
1.4
Importance of Project Management
Project Management is about managing through projects. The focus is on the customer and their needs and the
need to deliver on time and within budget in circumstances where products have shorter life cycles. This explains
why Project Management has gained prominence because of its capability to fast-track projects.
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Project Management
Many firms, especially in the Construction industry, have become highly projectised, this implies that their work is
based on projects or is structured on a project basis. Project Management is also grounded in management
theories which will be presented in the next section.
Project Management uses theories in management such as Change Management Theory, Theory of Reasoned
Action, Contingency Theory, Transaction Cost Theory, Management by Objectives, Management by
Walking About including Leadership Theories.
Think Point 1
Read these theories and link them to Project Management. Explain how
these theories guide project implementation?
1.5
The Relationships among Portfolios, Programmes, and Projects
There are differences between a Project, Programme and Portfolio. A portfolio is a collection of programmes which
are managed together, while a programme is a group of related projects which are managed in a coordinated
manner to maximise the benefits arising from joint coordination. A programme consists of projects which are linked
together to achieve a common goal. These projects within a programme are assigned to various teams. A
Bachelor’s or Master’s Degree Programme consists of modules or course which constitute a programme. As you
attend each course, that is a project for you. Government Ministers have portfolios – Education for example has
Portfolios of Higher Education and Basic Education. Figure 2 and Figure 3 below show the hierarchy of a Portfolio,
Programme and Projects.
Portfolio
Programme 1
Project A
Project B
Programme 2
Project X
Project Y
Figure 2: Hierarchy of Portfolio, Programme and Projects
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Prescribed / Recommended Readings
Soderlund, J. (2004). Building Theories of Project Management: Past Research,
Questions for Future, International Journal of Project Management, Vol. 22: pp. 183191
Figure 3: Triangular representation the relationship between projects, programmes and portfolio
Source: https://www.pmbypm.com/difference-project-program-and-portfolio/
Grouping of projects is done to take advantage of economies of scale, to reduce risk exposure and to make it easy
to manage the projects in a focused manner in order to achieve the organisation’s strategic goals.
1.6
Relationship between Project Management, General Management, Operations Management, and
Organisational Strategy
Project management organisations execute their strategies through projects. As such all projects must contribute
to the overall goal of the organisation. In other words, all projects must align with the organisation’s strategy drawing
from its strategic plan. An Organisational strategy provides the focus of an organisation with a long term horizon
in mind. Project Management is about managing those projects which are informed by the strategy. Operations
Management supports projects and involves functional departments such as human resources, procurement,
communication, accounting and research and development. Operations management provide services to projects
by recruiting and supplying the needed human resources and procuring both material resources and equipment
which are distributed and utilised at sites. The functions of a General Manager and that of a Project Manager are
shown in Table 1 below.
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Table 1: Differentiating the functions of a General Manager and a Project Manager
General Manager
Project Manager
Responsible for managing the status quo
Responsible for overseeing change
Authority defined by management structure
Lines of authority “fuzzy”
Consistent set of tasks
Ever changing set of tasks
Responsibility limited to their own function
Responsible for cross functional activities
Works in “permanent” organisational structures
Operates within structures which exist for the life of
the project
Tasks described as “maintenance”
Predominantly concerned with innovation
Main task is optimisation
Main task is the resolution of conflict
Success determined by achievement of interim
Success determined by achievement of stated end
targets
goals
Limited set of variables
Contains intrinsic uncertainties
Source: Larson and Gray (2014)
Activity 2
Watch this video for more about the role of a Project Manager
https://www.youtube.com/watch?v=dUhJuB69ZBo
1.7
Financial and Non-Financial Project Selection Approaches
Larson and Gray (2014) suggest that any model chosen for selecting projects should be realistic in that it should
take into account the available resources of skills, equipment, capital and risks involved in a project. They also
argue that the model also must be able be to take into account many factors and be able to predict many future
outcomes. Importantly the model must be understood by the users and be user-friendly by being executable,
comprehensible, convenient and not data intensive and whose benefits must outweigh its costs.
Some commonly used Quantitative models are:
Payback period: This model considers the amount initially invested in the project, which is divided by estimated
net cash inflows per year resulting from the project.
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It is a crude indicator of risk as it shows the number of years by which the initial investment id at risk. Thus, a
project with a shorter payback period is preferred and therefore selected.
Example: Sbu runs a small business enterprise. He is planning to invest in one of the two projects: either Project
A or Project B. Both projects have an initial capital investment of R12, 000. Using the Payback Period method,
which project should he invest in given the following information.
Project A
Project B
Year
Cashflows
Cumulative total
Cashflows
Cumulative total
1
4000
4000
2000
2000
2
6000
10000
4000
6000
3
6000
2000*/6000
4000
10000
4
1000
8000
2000/8000
In Project A, in the first two years, the firm would have recouped R10,000 (4,000 + 6,000)
2000* is the residual amount to achieve the payback and is obtained as R12,000- R10,000.
Project A will take 2 years and 4 months
Project B will take 3 years and 3 months.
Sbu will invest in Project A as it has a shorter payback period.
The advantages of the Payback Period include:
•
Measures the time it will take to recover the project investment costs
•
Shorter paybacks are more desirable
•
Emphasises cash flows, a key factor in business (Larson and Gray, 2014)
Limitations of Payback Period Method include:
•
Ignores the time value of money
•
Assumes Cash flows for the investment period (and not beyond)
•
Does not consider profitability (Larson and Gray, 2014)
The following models all make use of present values of future cash flows:
•
Net present value (NPV): Also referred to as the discounted cash flow model, it determines the NPV of
all the cash flows by discounting them (i.e. assessing whether they are less or greater than – in terms of
value) them against the required return on investment rate of the project. This will be elaborated in class
with examples
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Project Management
•
Profitability Index: takes into account the NPV of all future expected cash flows, which are then divided
by the initial investment in which any answer above 1.0 is accepted and the project is selected. This will
also be elaborated in class with examples
Qualitative Models
According to Larson and Gray (2014), qualitative models include:
Unweighted 0-1 factor model: in which management chooses some criteria. A panel either says a project
“Qualifies” or “Does not qualify” based on those criteria. At end of the evaluation, the number of “Qualifies” and
the number of “Does not qualify” are summed up and only projects that meet a specified threshold of “Qualifies”
are selected. It gives all criteria the same weight. There is no scoring, it is a matter of “yes” or “no” principle.
Unweighted factor scoring model: This model uses a rating scale (from a three-point scale to a ten-point scale).
Ultimately, the scores are added up and projects which have a score above the threshold are selected.
Weighted factor scoring model: This model assigns weights to factors given their relative importance to the firm.
The score per criterion is multiplied by the weight assigned to the criterion and the answers are added to obtain
the final overall score. See example below. Figure 4:
Figure 4: Project Screening Matrix:
Source: Larson and Gray (2014)
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The sacred cow are projects done at the whim of powerful senior people within the organisation without
considering their value to the firm or its strategy. Such projects can be implemented to test concepts and assess
the possibilities. Many Formula One teams such as Mercedes-Benz, BMW, Honda, and Ford do that to test their
braking systems, multivalve technology and so on.
The operating necessity: Often, action in some area is needed to keep a system or process intact. These actions
can very easily to take the form of a project. If the system or process is worth saving, such projects are worth
pursuing.
Accountability and responsibility still remains with management of which project is selected. It is not the
responsibility of the model! The model is just a tool. Overall, firms use different models to evaluate projects.
1.8
Forms of Organisational Structure
In Project Management, there are three forms of organisational structures which are commonly used, namely,
Functional Organisation, Dedicated Project Teams (Projectised) and Matrix Organisation. The three forms are
discussed in the next section.
1.8.1 Functional Organisational Chart
In a Functional Organisational Chart, staff are managed within their functional areas with such work being assigned
to a lead functional area. In other words, if the project is related to marketing, the marketing department will take
the lead. Similarly, if the matter is about Production, the Production Department will take the lead while all
coordination takes place at all four functional (management) levels. After the completion of the project, personnel
go back to their functional departments. In this type of Organisational Structure, staff tend to be loyal to their
departments. Figure 5 is an example of a functional structure.
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Project Management
Figure 5: Functional Organisational Structure
1.8.2
Projectised Organisation Chart/Autonomous Project Organisational Structure
A projectised organisation has dedicated teams assigned to projects. It is a collection of personnel from the different
functions assembled into a single project. Loyalty to the function diminishes as it is directed to the project as the
team’s function as distinct units from the main organisation under a dedicated project manager. Functional
departments will be there to give their support to the various project teams. The Project manager has total control
over the project team and the execution of the project. See Figure 6 below for a Projectised Organisational
Structure.
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Figure 6: Projectised Organisational Structure
1.8.3
Matrix Organisation Chart
A Matrix Organisation combines elements of the functional and projectised type of organisations by grouping
together people from different functional areas, however, with reporting taking place to both the functional manager
and to the project manager. It retains the functional structures but with a focus on the project. It has been termed
the hybrid structure. Some staff are assigned to the project on a full-time basis while others on a part-time basis
from the various functional departments. Figure 7 below is an illustration of a matrix organisation chart.
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Project Management
Figure 7: Matrix Organisational Structure
1.9
Determinants of Project Success
Project success is when a project has been completed within scope, budget and the stipulated time and meeting
or exceeding the customer’s expectation. It will also have been of high quality leaving both the contractor and
customer happy.
Project Success Factors include the following:
Clear goals/objectives – clear goals mean that the end game or the end result of the project is clear to all involved
in the project.
Good project plan – proper planning literally means a good part of the job has been done. Planning avoids
haphazard implementation of activities.
Good communication with client – constant communication with the client is important to ensure that they are
abreast with ongoing project work.
Adequate resources – when resources are available, project work will continue without stoppages and
interruptions.
Dedicated team – the commitment of staff to the project and their work in general is important to ensure that team
members work in unison to achieve a common goal. The team must consist of people with the requisite skills.
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Top management support – with top management support, many projects have succeeded to bear fruit as this
support gives legitimacy and authority to those who are executing it. That support should be clear, explicit and
implicit.
Good client relations – working with the client will ensure that the performing organisation is doing the work in
line with the client’s needs.
Feedback and feedforward mechanisms – projects should have mechanisms to ensure that information flows
backwards and forwards so that there is continuity of performance.
Transparency – openness with stakeholders will ensure that everyone buys into the project so that all of them can
commit their effort to their best ability.
Monitoring and evaluation – there should be mechanisms to monitor and evaluate projects at various stages of
performance from the beginning to the end.
Project failure is typically a result of the absence of the above success factors including other factors such as lack
of political support, unrealistic time frames, large teams, lack of leadership, weak participation in planning as well
as discord in the team.
Knowledge Check Questions
1. How different is Operations Management to Project Management?
1.10 Summary
This Unit covered concepts of a Project, Management and Project Management. The attributes of a project were
presented. The Unit also distinguished Projects, Programmes from Portfolios and described the Organisational
Structures utilised in Project Management. It is evident that Project Management requires careful planning and the
use of Project Management Tools and Techniques in order to achieve specific outcomes/deliverables in which the
project manager is responsible for change as the change agent with definite responsibilities. A successful project
starts on time, ends on time, ends within budget, and achieves the scope of the project. Unfortunately, many
projects do not meet these simple criteria. The next Unit looks at Project Management Process Groups as well as
the constraints and potential project resource problems.
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Project Management
Case Study
Clark Gates Manufacturing
BACKGROUND
By 1999, Clark Gates Company had grown into the third largest supplier
of Gates for both commercial and home use. Competition was fierce.
Consumers would evaluate Gates on artistic design and quality. Each
Gate had to be available in at least five different colours. Commercial
buyers seemed more interested in the cost than the average consumer,
who viewed the Gate as an object for security, irrespective of price.
Clark Gate Company did not spend a great deal of money advertising
on the radio or on television. Some money was allocated for ads in
professional journals. Most of Clark’s advertising and marketing funds
were allocated to the two semi-annual home and garden trade shows
and the annual builder’s trade show. One large builder could purchase
more than 5-10 gates for one newly constructed hotel or one apartment
complex. Missing an opportunity to display the new products at these
trade shows could easily result in a six to twelve-month window of lost
revenue.
CULTURE
Clark Gate had a non-cooperative culture. Marketing and engineering
would never talk to one another. Engineering wanted the freedom to
design new products, whereas marketing wanted final approval to make
sure that what was designed could be sold. The conflict between
marketing and engineering became so fierce that early attempts to
implement project management failed. Nobody wanted to be the project
manager. Functional team members refused to attend team meetings
and spent most of their time working on their own “pet” projects rather
than the required work.
Their line managers also showed little interest in supporting project
management. Project management became so disliked that the
procurement manager refused to assign any of his employees to project
teams. Instead, he mandated that all project work come through him.
He eventually built up a large brick wall around his employees.
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Project Management
He claimed that this would protect them from the continuous conflicts
between engineering and marketing.
THE EXECUTIVE DECISION
The executive council mandated that another attempt to implement
good project management practices must occur quickly. Project
management would be needed not only for new product development
but also for specialty products and enhancements. The vice presidents
for marketing and engineering reluctantly agreed to try and patch up
their differences, but did not appear confident that any changes would
take place.
Strange as it may seem, nobody could identify the initial cause of the
conflicts or how the trouble actually began. Senior management hired
an
external
consultant
to
identify
the
problems,
provide
recommendations and alternatives, and act as a mediator. The
consultant’s process would have to begin with interviews.
ENGINEERING INTERVIEWS
•
“We are loaded down with work. If marketing would stay out
of engineering, we could get our job done”
•
“Marketing doesn’t understand that there’s more work for us
to do other than just new product development”
•
“Marketing personnel should spend their time at the country
club and in bar rooms. This will allow us in engineering to
finish our work uninterrupted!”
•
“Marketing expects everyone in engineering to stop what they
are doing in order to put out marketing fires. I believe that
most of the time the problem is that marketing doesn’t know
what they want up front. This leads to change after change.
Why can’t we get a good definition at the beginning of each
project?”
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Project Management
MARKETING INTERVIEWS
•
“Our livelihood rests on income generated from trade shows.
Since new product development is four to six months in
duration, we have to beat up on engineering to make sure
that our marketing schedules are met. Why can’t engineering
understand the importance of these trade shows?”
•
“Because of the time required to develop new products [4–6
months], we sometimes have to rush into projects without
having a good definition of what is required. When a
customer at a trade show gives us an idea for a new product,
we rush to get the project underway for introduction at the
next trade show. We then go back to the customer and ask
for more clarification and/or specifications. Sometimes we
must work with the customer for weeks to get the information
we need. I know that this is a problem for engineering, but it
cannot be helped”
•
The consultant wrestled with the comments but was still
somewhat perplexed
•
“Why doesn’t engineering understand marketing’s problems?”
pondered the consultant. In a follow-up interview with an
engineering manager, the following comment was made:
•
“We are currently working on 15 different projects in
engineering, and that includes those which marketing
requested. Why can’t marketing understand our problems?”
Questions
1. Explain what the critical project management issue is
2. Describe what can be done about it
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Answers to Activities
Answers to Knowledge Check Questions
1. Answer in section 1.2 of this module
Answers to Case Study
1. What is the critical issue?
The problem is communication, prioritisation and organisational structure.
2. What can be done about it?
It will be necessary to bring Marketing people to talk to Engineering and make them understand the overall goal of
the firm. This can be done in the form of a team building exercise. They must all work together knowing the vision,
mission and goals of the firm. They must realise that if they do not work together, that will threaten the existence
of the whole firm. They may have to consider re-structuring to have a matrix organisational structure because it
allows staff to stay in their functional units but working in a project under a project manager. That way staff from
the two functional areas will know what each department does. Communication is important between people.
Working in silos does not work for a common good. Staff must learn how and what to prioritise.
Answers to Activity 1
Project Management involves planning, leading, organising, coordinating and controlling of resources within a
given timeframe and budget to achieve a clearly defined objective. There is a strong link between project
management and concepts and theories of management.
Answers to Think Point 1
Student is required to apply their knowledge.
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Project Management
Unit
2:
30
Constraints and Potential
Project Resource Problems
in a Project Environment
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Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
2.1 Introduction
•
Introduce topic areas for the unit
2.2 Project Constraints and Potential
•
Discuss project constraints and potential resource problems
•
Discuss the influence of scope, time and cost on the quality
Resource Problems
2.3 The Influence of Scope, Time and
Cost on the Quality of Projects
of projects
2.4 Theory of Constraints
•
Explain the theory of constraints
2.5 Problems Faced in Applying Project
•
Determine the problems faced in applying project
Management Tools
management tools
•
2.6 Summary
Summarise topic areas covered in unit
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
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Project Management
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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2.1
Introduction
This Unit will look at constraints and project resource problems in a project environment. Problems sometimes
emerge in projects because of poor estimation of time and costs, unforeseen events including a lack of adequate
resources of equipment, skills and capital. The constraints can be project constraints, internal constraints or
external constraints. Some of the constraints include technology, the firm’s resources, equipment capability, special
equipment and transport, currency risk, competition, standards, the economy, policies and so on. This unit looks
at mainly project constraints and some of these problems and provides some solutions.
2.2
Project Constraints and Potential Resource Problems
Projects are characterised by typical constraints of scope, cost and time which are the triple constraints. Scope
is about what is to be done. In other words, what will the project produce for the customer? If a customer wants a
three bedroomed house, the project must deliver a three bedroomed house. It can neither be a two bedroomed
house nor a six bedroomed house. The scope defines what is included and what is excluded in the project. The
budget for most projects is limited. Time is a very important factor in projects. It is one of the indicators of whether
a project was successful or not in the same vein as scope and budget. All constraints have an impact on quality.
This implies that any change to, say, the budget can affect the quality of the product or service either for the good
or worse. Fig 8 below shows the triple constraints when quality is taken into account.
Figure 8: Triple Constraints
Source: Larson and Gray (2014)
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Project Management
Besides these quadruple constraints, there are other constraints such as human resource constraints in relation
to special skills and adequacy of human resources; the environment may be new which may bring its own
challenges on operations; dependency constraints arise when the project relies on others for their inputs such
as suppliers and service providers. Any delays on their part will affect the project. It is clear that projects consume
resources and these resources are limited. This means that they have to be used effectively and efficiently with
less waste but superior outputs. Often times, these resources of money, time and people are limited. There is a
relationship between these constraints and they do impact on each other. For example, if you cut back on your
budget, it may take longer to complete the task on time. It may well affect the quality of the output. If you cut back
on time by taking short cuts, this may also affect the number of people who will be employed and obviously the
output. During the course of the project, if you add new activities which were not part of the scope are added, this
may affect the time and budget. To obviate some of these challenges, the next section looks at project success
factors.
2.3
The Influence of Scope, Time and Cost on the Quality of Projects
Scope, time and cost are related. If scope increases, this results in an increase in costs and time it takes to
accomplish the project. Cutting costs and time may negatively impact the quality of the project. If you are given a
project to complete in a tight schedule (time constrained), that may affect the costs because you may need more
resources to fast track the completion of the project and may also lead to the reduction of the project scope.
Similarly, a tight budget may mean reduced scope and increased time. All the three constraints affect quality as
mentioned earlier in Section 2.1.
2.4
Theory of Constraints
The theory of Constraints was advanced by Eliyahu M. Goldratt in 1984 in his book, The Goal, in which he argues
that in systems and organisations there are embedded constraints. He therefore argues that it is necessary to
identify that Constraint and work around it. The constraint could be a human being or a machine in the system. It
is necessary to identify, and use it, reduce its impact, and work around it in a cyclical fashion – that is in rotations.
The constraints can be both internal and external. Internal constraints include policies, people, and equipment.
Constraints are considered limiting factors because they make it difficult for organisations to achieve their goals.
2.5
Problems Faced in Applying Project Management Tools
Problems in applying project management tools
Mtapuri et al (2008), note that the potential problems that can derail a projects include:
34
•
Over-budgeting or under–budgeting of funds
•
Cost over-runs which imply actual costs are more than what is contained in the budget
•
Involvement in many projects and failing to complete them
•
Extension of the scope – necessitating the need for more resources
•
Delays in one or more phases affecting subsequent phases
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Project Management
•
Staff and equipment shortages
•
Machine and equipment breakdowns
•
Computer virus attacks
•
Communication breakdowns among stakeholders from misunderstandings
•
Poor quality outputs
•
Hardware and software failure
•
Errors and omissions
•
Unhappy and dishonest personnel
These problems affect the scope, time, cost and quality of the project. It is therefore important to use project
management tools because they bring about some level of reliability, efficiency and precision that would be absent
without them.
There are advantages of using Project Management tools and techniques. These include:
•
They help hasten the completion of projects and they are reliable
•
They are efficient and effective because they have been tried and tested
•
They allow for cost savings in resource use
•
Using spreadsheets is good for numerous computations which a manual system would not cope with
especially in a project which is complex and huge
•
They are fast and expedient, for example, emails and other applications for messaging
•
They allow visual presentation of project elements and outcomes in its various phases – visualisation
There are also limitations found in the use of Project Management tools and techniques:
•
They require special expertise which at times is specific
•
Some of the tools and techniques are not easily comprehensible as they require appropriate training
•
Some of the tools and techniques do not suit all projects
•
Some are expensive to purchase such as Programme Evaluation and Review Technique (PERT) software
•
Some require technical skills which may not be readable available
•
Some have limitations of their own, for example, bar charts do not have the same capacity to depict
relationships between activities which the Critical Path Method (CPM) can do. Bar charts also do not show
critical activities on the critical path (Mtapuri et al., 2008)
In sum, each Project Management tool and technique has its own pros and cons. For instance, the Gantt chart can
be messy due to frequent changes. The CPM and PERT are complicated, meaning that they are not user-friendly.
The CPM and PERT require a lot of technical skills which are not always available.
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Project Management
The WBS does not show the timing of activities. Computer- based Project Management tools can only be used by
those with the relevant technical skills (Mtapuri et al., 2008).
Practice has shown that there are solutions to common problems. Some of the solutions include:
2.6
•
Ensure that you have experts to do the cost estimates and budgeting
•
At all material times be prudent and realistic in your evaluations
•
Only take as much work as you can do without over–committing yourself
•
Service your equipment and machinery regularly to avoid breakdowns
•
Replace old machinery when due for replacement
•
Keep stakeholders informed using information communication tools such as e-mail and meetings
•
Use high quality materials to ensure that outputs are equally of high quality
•
Train staff properly
•
Pay staff well and introduce incentive schemes so that they work harder
•
Create hardware, software and data back-ups at all times
•
Ensure you have contingency plans for alarm activation, evacuation, fire detection, and lock up
•
Create centres of excellence and continuous learning (Mtapuri et al., 2008)
Summary
This Unit looked at constraints which can affect a project in its life cycle. These constraints range from project
constraints, internal constraints to external constraints. The Unit focused essentially on the triple constraints of
scope, cost and time. It also examined their commensurate impacts on quality when they are modified. Constraints
are deemed limiting factors because they encumber efforts by organisations to achieve their goals. Using project
management tools has the advantage to ameliorate some of the problems as they quicken the completion of
projects, are more efficient and effective and reliable because many of them have been tried and tested in practice.
The next Unit looks at the Project Life Cycle and the tools and techniques used at different project stages.
Knowledge Check Questions
1. Explain what you think will happen if a project has NOT been allocated
enough human resources and a sufficient budget
2. Describe the triple constraints and explain in what ways are these related to
Quality
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Case Study
Organizational Change Management at Work in the Global
Pharmaceutical Industry
In 2009, after undergoing a merger and appointing a new CEO, global
healthcare company GSK, in London, UK, decided to adopt a new
organisational approach to change. To accomplish this, it launched the
Accelerating Delivery and Performance (ADP) program, which
combines approaches derived from project management as well as
Organisational Development (OD) and Lean Six Sigma (Lean Sigma).
By taking sections from each of these disciplines, GSK was able to
create an approach that could sufficiently support its ambitious
strategy. When things are not working, there is need for change.
Visit the link below to study the complete case and attempt the
questions that follow.
https://www.pmi.org/business-solutions/casestudies/organizational-change-management-pharmaceuticals
Questions
1. Explain your understanding of Accelerating Delivery and
Performance (ADP) programme
2. Describe the three approaches that provide the base for ADP
3. Explain its six core principles
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Project Management
Answers to Activities
Answers to Knowledge Check Questions
1. The problems are inadequate human resources and an insufficient budget. These will lead to the following
consequences: Delays in one or more phases affecting subsequent phases; the possibility of failing to complete
the project on time; staff and equipment shortages; staff resignations, poor quality outputs, a dissatisfied customer,
a bad reputation and so on
2. Answer is in section 2.2 of the Module Guide
Answers to Case Study
1. It is a change management approach adopted by global healthcare company GSK, to manage change
2. It is founded on Project Management, Organisational Development (OD) and Lean Six Sigma (Lean
Sigma)
3. Its core principles are:
38
•
All change starts with oneself
•
Active, committed and visible sponsorship by key stakeholders (at all levels) is imperative
•
Ensure that simple, time-bound measures tied to financial/business results are defined
•
Include people who are impacted by change to own and design it
•
Focus on the few vital things that you can change now
•
Design fit for purpose solutions that address customer needs, not wants
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Unit
3:
MANCOSA
Project Life Cycle and
Tools and Techniques used
at Different Project Stages
39
Project Management
Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
3.1 Introduction
•
Introduce topic areas for the unit
3.2 Project Life Cycle and its
•
Discuss the project life cycle and its characteristics
•
Explore project management tools and techniques used at
Characteristics
3.3 Project Management Tools and
Techniques by Knowledge Area
different stages
•
3.4 The Application of Project
Management Tools and
Determine how to apply project management tools and
techniques
Techniques
•
3.5 Outputs of Project Management
Tools and Techniques
Discuss the various outputs of project management tools and
techniques
3.6 Factors Constraining Project
•
Examine the factors constraining project success
•
Summarise topic areas covered in unit
Success
3.7 Summary
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
40
MANCOSA
Project Management
•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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3.1
Introduction
Project success can be determined by completing a project within scope and cost, on time and of high quality and
exceeding the customer expectation. Within its project life cycle, a variety of Project Management Tools and
Techniques are used. They depend on the size of the project, its complexity and the capacity and resources which
the organisation has at its disposal. The skills and technologies which the firm has are important factors for the
completion of a project. Management practices and organisational culture have a bearing on the performance of
individual workers and the whole organisation. This Unit looks at Project Management Tools and Techniques and
how they are deployed during defining, planning, execution, closure and monitoring and evaluation of projects.
3.2
Project Life Cycle and its Characteristics
A project has four stages in its life cycle. A project life cycle is concerned with sequencing activities in stages to
achieve the project’s outcomes. Different authors formulate and specify these stages differently. You may find
some books with five stages. That should not bother you as they are merely different formulations.
In this Guide, we will explain using the Project Life Cycle (PLC) with four stages:
Stage 1: Defining stage
The first stage is called the Defining stage. At this stage, brainstorming of the general idea is done. The intended
outcome is clarified including the goals, project specifications, tasks and responsibilities. Goals are set, the project
specifications are established (e.g. the size of the house), tasks are revealed (such as foundations, building,
roofing, landscaping) and responsibilities are assigned to team members (who is responsible for what).
During this stage, the stakeholders have to agree on a specific outcome and a decision is made whether to pursue
the project or not. The person supporting the project is usually called the sponsor. This does not mean that he/she
is the one funding the project, but is just the person behind the project. It is also at this stage that a Project Manager
is appointed. Fig 9 below shows the project life cycle.
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Figure 9: The Project Life Cycle
Source: Larson and Gray (2014:9)
Stage 2: Planning stage
The second stage is called the planning stage. This takes place only when a project has been approved. The
scope of the project is a key outcome of this phase. The scope is a clear and detailed written statement of the
outcome of the project, the deliverables, product or service. Once this is known, planning can then begin in
essence. This involves producing a budget for the project. It is not easy to put up a budget if the project is big and
complex and therefore requires skills and experience. Time frames which are called schedules have to be
established. Resources such as machinery and personnel have to be identified and allocated to the project.
Projects are affected by such risks as unanticipated price increases, currency fluctuations, and delays in receiving
materials, power black outs for whatever reason, industrial strikes and so forth.
Planning for staff is important, for example, where additional staff is needed, more people have to be hired. During
this stage a Risk Analysis is performed. The reporting channels are also established. The Project Manager has to
ensure that resources are adequate before the project commences and that there should be contingency measures
in place to deal with unexpected events. Once all the people, resources and technologies have been assembled,
the next big stage is execution.
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Project Management
Stage 3: Execution stage
Execution is synonymous with implementation. It consumes most of the time and effort. That is when the real work
begins. It is about authorising activities as the project progresses. Status reporting has to do with progress reporting
in terms of how far the project is being undertaken. Any changes to the project scope is recorded and agreed upon
with stakeholders. It is during this stage that quality assurance and control are important. Inspections have to be
undertaken to ensure that a quality outcome is produced. Additional forecasts are done mid-way to ensure that
tasks are going to be completed on time and delays are also anticipated and catered for in the contingency plans.
The stage involves controlling resources, monitoring and evaluation until the project can be delivered to the
customer. Once the project is complete, the closing stage follows.
Stage 4: Closing stage
In the closing stage, training of customers is done so that they are able to use the product, the computer or the
dam which was the ultimate deliverable of the project. This is the time to also acknowledge the contribution of team
members and rewarding those who excelled. Documents such as title deeds are transferred to the home owner or
handing over the computer/car manual that relates to the computer/car in the case of a computer/car during this
time. The customer should be in a position to accept the product or services if all specifications were met. The
Project Management team will then release resources both human and material to the next project. During
evaluation, team members assess how the team performed in the form of a self-evaluation after the project has
been completed. This is linked to lessons learned. What did we learn from this experience? Which best practices
should be pursued further and what bad practices should be abandoned?
3.3
Project Management Tools and Techniques by Knowledge Area
Project Management uses a variety of tools and techniques. These can be grouped by knowledge area although
some of the tools can be used in more than one knowledge area. Table 2 below shows some of the Tools and
Technique by Knowledge Area.
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Table 2: Project Management Tools and Techniques by Knowledge Area
Knowledge area
Examples of Tools and Techniques
Project Integration
Work authorisation system, Status review meetings, Project Management
Management
Information System, General Management Skills, Organisational Procedures,
Product Skills and Knowledge, Change Control System
Project Scope Management
Project Selection Methods, Expert Judgement,
Benefit/Cost Analysis,
Product Analysis, Performance Measurement, Scope Change Control
System, Alternatives Identification, Work Breakdown Structure Template
Project Time Management,
Diaries, Arroe Diagramming Methods, Network Templates, Schedule Change
Control System, Project Management Software, Decomposition, Templates
Project Quality Management
Quality Audits, Quality Planning Tools and Techniques, Benchmarking,
Benefit/Cost Analysis, Flowcharting, Inspection, Control Charts, Pareto
Diagrams, Statistical Sampling, Trend Analysis
Project Cost Management
Budget, Variance Analysis, Cost Estimating Tools and Techniques,
Analogous Estimating, Bottom-Up Estimating, Expert Judgment, Cost
Change Control System, Expert Judgment, Parametric Modelling
Project Procurement
Make or Buy Analysis, Expert Judgement, Independent Estimates, Contract
Management
Change Control System, Performance Reporting, Payment System, Bidders
Conferences, Advertising, Standard Forms, Contract type Selection, Contract
Negotiation, Weighting System, Screen System, Procurement Audits
Project Human Resource
Negotiations, Human Resource Practices, Organisational Theory, Templates,
Management
Team-Building Activities, General Management Skills, Reward and
Recognition System, Training, Procurement,
Project Risk Management
Simulation, Decision Trees, Expert Judgement, Risk Plan, Workarounds,
Contingency Planning, Insurance, Procurement, Alternative Strategies,
Checklists, Flowcharting, Interviewing
Project Communication
Communication Plan, Performance Reporting Tools and Techniques,
Management
Communication Skills, Performance Reviews, Variance Analysis, Information
Distribution Tools and Techniques, Trend Analysis, Earned Value Analysis,
Information Retrieval System, Information Distribution System,
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Project
Stakeholder Stakeholder Analysis, Performance Reporting Tools and Techniques,
Management
Communication Skills, Information Retrieval System, Information Distribution
System
This section will present a few examples of common project management tools.
3.3.1
Templates
A template is a skeleton of a document with headings and explanatory notes, without its content so that documents
are standardised. Standardisation is useful so that processing is systematic and uniform. If people use different
formats, process becomes difficult. Templates enable people to find information quicker and if well-constructed are
generally user-friendly. These blank documents emanate from old projects and practice. Templates for minutes,
memos, claim forms, time sheets, invoices, receipts, payslips and material requisition orders are common. Below
is a template for a Petty Cash Voucher.
Table 3: Template of a Petty Cash Voucher
VOUCHER: PETTY CASH
Date:
Item
R
C
Sub total
VAT
Total
Account to charge………………………….
Folio………………………………………
Authorised by…………………………………
3.3.2
Costing and accounting systems and management information systems
These are used to budget for the project; store, process and retrieve information which is generated during the
implementation of the project.
3.3.3
Expert judgement
The services of experts are useful for their advice and views on how the project is running and how it is being
executed.
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3.3.4
Computer software and spreadsheets
These Project Management tools are easy to use, fast and good for providing quick estimates. Nowadays, they
are generally user-friendly.
3.3.5
Quality inspections and audits
These are used to measure, examine and test components of the project to see if the results are in line with the
expected outcomes.
3.3.6
Team building activities
These include sporting activities and debates. These tools are used to enhance productivity in project.
3.3.7
Daily diary
The daily diary records events as a project is running. This record can be used for future reference, in case of a
dispute, to build on the experience and, importantly, as a way to create a database of knowledge.
3.3.8
Contract correspondence
This records and confirms events, agreements, instructions and any changes to the project. All such
correspondence, whether emailed or posted, is kept during the project’s life and for a number of years afterwards
based on legal requirements and company policy.
3.3.9
Stakeholder analysis
When running a project, you must always take into account the needs of your stakeholders. To do that, you have
to understand who your stakeholders are. This is done through a stakeholder analysis by finding out the interests
of all parties in the project.
3.3.10 Gantt charts
The Gantt chart, developed by Henry Gantt in 1916, is also called a Bar chart. The Gantt chart is a diagram that
shows the activity, jobs, processes and the time that activity is going to take. The length of the bar is proportional
to the duration of the activity. The chart shows what jobs are to take place at any one time, how the start and end
of each activity is related to the other and when the whole project will end. For more on the Gantt chart see section
4.2.
3.3.11 Milestone Charts
A milestone chart is table that shows the major events and the dates of completion. The events are the major
activities which are also called deliverables. In principle, a milestone chart usually includes the start date, end date,
major milestones and written reports.
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Figure 10 shows a milestone chart.
Event
Date
March
April
May
June
July
Plan
Construction
Inspection
Figure 10: A Milestone Chart
This Milestone chart shows:
•
A plan of the house is the key deliverable in April. If the plan is not out by that time, then there is a delay
in the following activities. Reasons must be given for the delay
•
Construction must start and end in May
•
By June, the building must be ready for inspection
3.3.12 Work Breakdown Structure (WBS)
The work breakdown structure defines the workload by breaking down the tasks into smaller tasks. Each task is
given a deadline for completion as well as its priority. The work breakdown structure shows the project, its systems,
components, staff tasks, activities and responsibilities. The WBS given is about building a house. See section 4.3
of this module for a WBS.
3.3.13 Programme Evaluation and Review Technique (PERT)
The Programme Evaluation and Review Technique (PERT) has a critical path and critical activities (these are
defined in Section 4.5.2). However, the PERT also emphasises time or the duration of an activity.
PERT includes:
48
•
An optimistic time estimate, which is an estimate of the minimum time an activity will require
•
A most likely time estimate, which is an estimate of the normal time an activity will require
•
A pessimistic time estimate, which is an estimate of the maximum time an activity will require
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3.4
The Application of Project Management Tools and Techniques
Project Management tools have wide application in all areas. The tools can be used in the design and making of
airplanes, ships, cars, machinery, computers, buildings and houses. Technology is always changing and many
things are now being designed using computers. This brought about the idea of Computer Aided Designs (CAD).
In manufacturing, the idea of Computer Aided Manufacturing (CAM) emerged such that the manufacture of goods
is driven by computers.
3.5
Outputs of Project Management Tools and Techniques
Outputs of Project Management tools and techniques may include:
•
A report
•
A new building
•
An architectural drawing
•
A poster
•
A sporting event such as the 2010 World Cup Soccer in South Africa
We can further separate projects into technical, developmental and business related projects.
Technical projects
•
Design of a space craft
•
Design of an airplane
Developmental projects
•
Housing project
•
Road or dam construction project
•
Income generating project for the youth
•
Market gardening project
•
Sewing project, embroidery project
•
Cattle fattening project
Business related projects
•
Construction of a shopping mall
•
Construction of an oil refinery plant
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3.6
Factors constraining project success
Gido and Clements (2015: 6-7) state the following:
•
Scope (all work that must be done to produce the deliverables must meet customer requirements and
acceptance criteria)
•
Quality (projects must have quantitative acceptance criteria)
•
Stakeholders (they may influence and affect the performance of the project)
•
Schedule (this specifies the timetable which must be conformed to)
•
Budget (amount payable for acceptable deliverables)
•
Resources (specific resources are required at specific times)
•
Risk (technology may not work as envisaged) and
•
Customer satisfaction (entails sustaining a relationship with the customer via regular communication)
as factors constraining project success
3.7
Summary
This unit examined the Project Life Cycle and its characteristics. The four stages of Defining, Planning, Execution
and Closing were elaborated with respect to the activities undertaken at each stage. Furthermore, Project
Management Tools and Techniques were presented with explanation of the commonly used Tools and Techniques
which ranged from the basic to sophisticated ones. Examples of projects, categorised by their nature, were
presented. To be a good Project Manager, you need to know these tools and techniques and apply them. The next
Unit further elaborates on key Project Management Tools and Techniques and their applications.
Knowledge Check Questions
1. Explain what a Project Life Cycle is and apply it when organising a
hypothetical 21st Birthday Party for your close relative using an appropriate
sketch
2. You have been nominated to be the Events Manager for a Wedding for a
very wealthy couple staying in Umhlanga Rocks in Durban. You have been
asked to show what will hypothetically be happening at each stage of this
Project’s Life Cycle
3. Identify a project of your choice where Project Management tools and
techniques can be identified. Provide examples of the way in which Project
Management tools and techniques are used
Also, copy and complete the table based on what you learnt so far.
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Technical
project
Developmental Business Reason
project
related
why I
project
think it
belongs
to the
group
Example 1
Example 2
Example 3
4. Select a project that you are familiar with in your neighbourhood. Using the
knowledge that you have gained, briefly discuss the project.
Use these headings:
•
The nature of the project
•
What the project is about
•
What Project Management tools are being used
•
What problems have been encountered in the project
•
How the problems have been solved
Case Study
Project Management Helps Create World's Longest Natural Gas Pipeline
In 2013, The People's Republic of China and the Hong Kong Special
Administrative Region (HKSAR) Government completed work on the world's
longest natural gas pipeline. This 9,000 km long pipeline now provides power to
500 million Chinese residents and the city of Hong Kong.
Visit the link below to study the complete case and attempt the questions that
follow.
https://www.pmi.org/business-solutions/case-studies/eworlds-longestnatural-gas-pipeline
Questions
1. What was the problem that necessitated this project to be initiated?
2. What good project management practices were implemented in order to
complete the 9,000km long pipeline from mainland China to Hong Kong?
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Answers to Activities
Answers to Knowledge Check Questions
The answer to Question 1 is found in section 3.2
The answer to Question 2 is found in section 3.2
The answer to Question 3 is found in section 3.3
The answer to Question 4 is found in section 3.2, 3.3, 3.4 and 3.5
Answers to Case Study
1.
What was the problem that necessitated this project to be initiated?
Hong Kong was facing a looming gas problem because the reserves from the supplier in Hainan province in
China were depleting. A new source of gas had to be found.
2.
What good project management practices were implemented in order to complete the 9,000km long
pipeline from mainland China to Hong Kong on time, with minimal environmental impact and zero
fatalities?
52
•
Effective Planning
•
Effective Scope Management
•
Proactive Quality Monitoring
•
People Management
•
Proactive Risk and Safety Management
•
Effective Communication
•
Effective Decision Making
•
Effective Stakeholder Management
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Unit
4:
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Tools and Techniques
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Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
4.1 Introduction
•
Introduce topic areas for the unit
4.2 Gantt Chart
•
Discuss and construct a Gantt chart
4.3 Work Breakdown Structure
•
Describe and develop a work breakdown structure
4.4 Project Network Diagrams
•
Explain and draw project network diagrams
•
Discuss and apply the critical path method
•
Summarise topic areas covered in unit
4.5 Summary
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
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•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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4.1
Introduction
There are some Project Management Tools and Techniques that every person who is interested in Project
Management should be aware of. These are common tools and techniques but very important and include the
Gantt Chart, a Work Breakdown Structure and the Critical Path Method. Other network diagrams are also
discussed but greater detail is given to the former given their importance in the practice of Project Management.
They distinguish Project management from other forms of management. The next section looks at the Gantt Chart.
4.2
Gantt Chart
As earlier mentioned in Unit 2, a Gantt Chart, is a Bar chart that shows the activity and its duration/time to illustrate
diagrammatically the spread of the activities over the project. The length of the bar is proportional to the duration
of the activity. The chart shows what jobs are to take place at any one time as well as how the start and the end of
different activities are related. Figure 11 shows a Gantt Chart of a new House.
Design
Demolition
Construction
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Figure 11: A Gantt chart showing a project to construct a new house
This Gantt chart shows the work packages in the form of activities that are going to take place:
•
The design of the house will take 2 months, namely February and March
•
Demolition of the old house will take place in April
•
Construction will be carried out from May to September
The Gantt Chart can also be presented as shown in a project involving a survey to collect data on Job Satisfaction
among Young Business Managers in 2018. (See Figure 12)
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Gantt Chart: Survey on Job Satisfaction among Young Business Managers 2018
Activity
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 Phase 1: Project
√
Initiation
2 Phase 2: Questionnaire
√
√
Design
3 Phase 3: Pilot Study
√
4 Phase 4: Data
√
√
√
√
√
√
√
√
√
Collection
5 Phase 5: Data Entry
and Analysis
6 Phase 6: Report Writing
√
√
7 Phase 7: Close out
√
√
Figure 12: Gantt chart of a Survey on Job Satisfaction
In this example, a close out phase has been added to demonstrate the importance of a close out report. The close
out report, which should be compiled at the end of a project, presents lessons learnt, the challenges faced during
the execution of the project and how they were resolved. It is useful to learn from previous experience and some
best practice. There is a wealth of knowledge and experience contained in the close out reports.
4.3
Work Breakdown Structure
This section will look at a Work Breakdown Structure of constructing a House. In order to minimise the chances of
encountering problems, and to make it easier to plan and budget, each project is also broken down into tasks. This
is known as Work Breakdown Structures, or more commonly as WBS. A task is a separate and specific job within
the project which also has a start and end date. Certain tasks must be completed before others, others must be
completed after others, and some are done simultaneously. The link between project tasks and when they must
start are referred to dependencies. For example, when building a house, execution of the electrical work depends
on when the brickwork is finished. Roof work can only be done after the walls have been completed. It is very
important to know and plan for dependencies as it can cost a lot of money later to re-do tasks because the
dependencies were not identified correctly.
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For example, if the air conditioning is done after the walls have been painted, then there will be damage that has
to be repainted. This means money and time are wasted to rectify those mistakes (Mtapuri et al., 2018).
For a WBS of constructing a House, see Figure 13 below.
House
Foundation
Frames
Floor
Rough
Plumbing
Wall
Roof
Painting
Components/Rough
Electricity
Interior
Plastering
Cabinets and Kitchen
appliances
Floor Tiles and
Carpets
Figure 13: A Work Breakdown Structure of a House
Source: Larson and Gray (2014)
In sum, a work breakdown structure is used to define the project work by breaking it down into specific tasks which
are then subdivided into more detailed components and finally into a set of activities and their related costs.
4.4
Project Network Diagrams
According to Larson and Gray (2014), a Project Network is a flow chart in the form of a graph that illustrates the
sequence and relationships between activities called interdependencies, by reflecting start and finish times of
activities of the critical path across a network. It important as a base for resource (labour and equipment)
scheduling. It provides the duration of the project. It forms the foundation to create the budget. It helps the manager
to stay focused on the game plan. Importantly, it identifies activities which are ‘critical’ and should not be delay lest
they affect the whole project.
4.4.1 Precedence Notation
There are two equivalent ways of representing activities on a network:
58
•
Activity-on – arrow form
•
Activity-on – node form
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The Activity-on-node network
Each job on an activity-on-node network is represented by a rectangular box. A descriptive label and the duration
of the activity is written into the box. The left edge of the rectangular box represents the start of the activity. The
right edge of the rectangular box represents the completion of the activity. Sequence arrows represent the
relationship between the completion of preceding activities and the starts of the succeeding ones. Figure 14 shows
the project presented as an activity-on-node network.
Figure 14: Network Diagram: Activity on Node
Source: Larson and Gray (2014)
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Figure 15: Illustration of a merge activity
Source: Larson and Gray (2014)
The Relationship between activities:
Independence
Here, the three activities are not related to each other, namely A, B and C. Although all are linked to D.
Neither the start nor the end time of each activity is affected by what happens to the activity.
Merge
This occurs when an activity cannot start until two or more immediately preceding activities have been completed.
In Figure 15, for example, motorcar assembly cannot start until the body and engine have been made. A, B and C
merge in D.
Figure 16: Critical Path
Source: Larson and Gray (2014)
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Sequence
Here, one activity cannot start before anther is finished. For example, B cannot start before A.
For example: a wall cannot be built until the foundation is laid.
The end event of the earlier activity is the start of the later one.
Burst
This occurs when, as soon as one activity is finished, two or more others can start. In Figure 17, for example, as
soon as the Board agrees to go ahead with building the new office, the design team can be engaged and the
building plot can be bought.
Figure 17: Illustration of a Burst activity: Source: Larson and Gray (2014)
Figure 18: Precedence
Source: Larson and Gray (2014)
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Figure 19: Merge and burst activities
Source: Larson and Gray (2014)
Combined burst and merge
This occurs when several activities cannot start until two or more immediately preceding activities have been
finished.
Timescales
For most projects, the most convenient units for activity duration are weeks, days, shifts or hours. A rule of thumb
is that the basic unit should be the order of 1- 2 percent of the timescale for the whole project.
For example: use weeks for projects lasting 2 to 5 years. Use the same unit for all durations and for event times.
If critical activities are delayed, or exceed their estimated duration, the whole project will be delayed by that amount
of time. Therefore, a critical activity is an activity that joins two critical events and has a duration which equals the
difference between the times of these critical events.
4.4.2 Critical Path Method (CPM)
A project consists of activities. When these activities have been completed, then the project has been completed.
An activity is an operation which consumes time and resources. CPM shows a picture of these activities and their
relationships using nodes.
An event is a state in the progress of a project after completion of all preceding activities, but before the start of
any succeeding activity. A square is used to show the event. Each event must have a unique label which is shown
at the top or centre of the square.
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In this case, the Activity on Node (AON) format is used in which a forward and backward passes were undertaken
to determine the project’s duration as well as to identify critical activities (those without slack) and the critical path.
Every project has a definite start which is shown by a start event, the only symbol with outgoing but no incoming
arrows. The definite project completion is shown by the finish event, which has arrows entering it but no outgoing
ones. Table 3 shows the network computation process.
Table 4: Network Computation Process
ES
EF
ID
LS
•
•
LF
Forward Pass—Earliest Times
o
How soon can the activity start? (early start—ES)
o
How soon can the activity finish? (early finish—EF)
o
How soon can the project finish? (expected time—ET)
Backward Pass—Latest Times
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o
How late can the activity start? (late start—LS)
o
How late can the activity finish? (late finish—LF)
o
Which activities represent the critical path?
o
How long can activity be delayed? (slack or float—SL)
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Project Management
Figure 20: Information for creating a network
Source: Larson and Gray (2014)
Forward Pass Computations
•
Add activity times along each path in the network (ES + Duration = EF)
•
Carry the early finish (EF) to the next activity where it becomes its early start (ES) unless…
•
The next succeeding activity is a merge activity, in which case the largest EF of all preceding activities is
selected
Figure 21: Illustration of a forward pass
Source: Larson and Gray (2014)
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Backward Pass Computation
•
Subtract activity times along each path in the network (LF - Duration = LS)
•
Carry the late start (LS) to the next activity where it becomes its late finish (LF) unless
•
The next succeeding activity is a burst activity, in which case the smallest LF of all preceding activities is
selected
Figure 22: Illustration of a backward pass: Source: Larson and Gray (2014)
Source: Larson and Gray (2014)
Determining Free Slack (or Float)
Figure 23: Forward and backward passes completed
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Free Slack (or Float)
•
Is the amount of time an activity can be delayed after the start of a longer parallel activity or activities?
•
Is how long an activity can exceed its early finish date without affecting early start dates of any
successor(s)
•
Allows flexibility in scheduling scarce resources
For more on a forward and backward pass, see Larson and Gray (2014: 160). A critical path consists of critical
activities only. If there is more than one, they all have the same duration. An event that is not critical is said to have
slack (e.g. BDGF). Float is the time available for an activity in addition to its duration. Non – critical activities have
float – it is time by which the activity can be delayed without affecting the duration of the project.
The duration of the above project is 10+25+50+15=100. And the critical path is A, C, E, H. These are activities
without any slack. B, D, G and F are non-critical activities because they do have slack and can be delayed by the
same amount of slack they have without affecting the overall project duration.
4.5
Summary
This Unit looked at important Project Management Tools and Techniques namely the Gantt Chart, Work
Breakdown Structure and Critical Path Method. It also looked at issue that deal with Project Closure. It highlighted
that information contained in databases needs to be updated before closure. Subsequently, the same information
should be archived. This database is a repository of all project information including information on lessons learnt
which will be used in future projects. The next section will look at Communication and Risk Management Tools and
Techniques.
Knowledge Check Questions
1. Draw an Activity on Node project network. Do the forward and backward
pass, compute the activity slack and identify the critical path using this
information
Activity
A
B
C
D
E
F
G
66
Predecessor
None
A
A
A,B,C
D
D,E
F
Time (Days)
3
2
5
4
6
2
1
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2. Draw an Activity on Node project network. Do the forward and backward
pass, compute the activity slack and identify the critical path using this
information
Activity
A
B
C
D
E
F
G
H
Predecessor
None
A
A
A
B
C,D
E
G, F
Time (Days)
4
6
3
6
5
8
10
2
Case Study
IBM Strengthens Focus on Professional Project Management
On 5 February 1997, the IBM Project Management Centre of Excellence (PMCOE)
was born with a charter to drive IBM’s support of professional project management
worldwide. The initial charter drove more consistent and broader use of project
management disciplines, including the formalisation of the position of project manager
throughout the organisation. Over time, the IBM PMCOE has driven the transformation
and integration of project management into the fabric of the organisation. Today, IBM’s
professionals are more experienced and capable in their abilities to get their work
done using project management disciplines.
Visit the link below to study the complete case and attempt the questions that follow.
https://www.pmi.org/business-solutions/case-studies/ibm-strengthens-focus-onprofessional-project-management
1. Explain how projects were grouped at IBM for effectiveness and success
2. Describe the new ways of learning which has IBM implemented for effectiveness
3. Describe the tools and techniques which support IBM’s practices found in its
Worldwide Project Management Method (WWPMM)?
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Answers to Activities
Answers to Knowledge Check Questions
The Project duration for Project 1 is 3+5+4+6+2+1=21 days
The Project duration for Project 2 is 4+6+5+10+2=27 days
Answers to Case Study
1. How were projects grouped at IBM for effectiveness and success?
Projects were grouped into services, products and solutions for effectiveness and success;
2. What new ways of learning has IBM implemented for effectiveness?
The new ways of learning which IBM implemented include videos, gaming and interactive eLearning techniques.
3. Which tools and techniques support IBM’s practices found in its Worldwide Project Management Method
(WWPMM)?
IBM’s Worldwide Project Management Method (WWPMM) is supported by project planning, work plan generation,
estimating costs and schedules, time tracking and status reporting.
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Unit
5:
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Communication and Risk
Management Tools and
Techniques in a Project
Management Environment
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Project Management
Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
5.1
Introduction
•
Introduce topic areas for the unit
5.2
The Importance of
•
Discuss the importance of communication in project
Communication in Project
management
Management
5.3
Developing a Project
•
Develop a project communication plan
Communication Plan
5.4
Risk
•
Define the concept risk
5.5
Risk Management
•
Discuss risk management and its four stages
5.6
Risk and the Risk Management
•
Explore and discuss the risk management cycle
•
Apply the tools and techniques of risk management
•
Summarise topic areas covered in unit
Cycle
5.7
Tools and Techniques of Risk
Management
5.8
Summary
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
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•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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5.1
Introduction
Larson and Gray (2014) argue that the scope of communication encompasses receiving, processing and
disseminating of information. According to PMBOK (2013: 287), ‘Project Communications Management includes
the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage,
retrieval, management, control, monitoring, and the ultimate disposition of project information’. Because the project
Manager has to communicate with people from within and outside the organisation who come from different cultural
backgrounds and with different levels of expertise, he/she needs to be a good communicator.
As the project has a start and an end, it has a life cycle. The interesting part of a project life cycle is that at the
beginning of the project, you have the most opportunity to change things, and you have spent the least money, so
the risk at the project start is high. However, as the project progresses, the opportunity to change things is reduced,
until a point is reached where it cannot be changed. The risk is also decreased because so much has already been
spent, and so much of the project has already been completed. Risk in a project declines as the project comes
closer to conclusion. The reason is simply that there is less that can go wrong as more and more of the project is
completed. However, the amount invested in the project is at its highest at the end of the project. This Unit will look
at Communication and Risk Management Tools and Techniques.
5.2
The Importance of Communication in Project Management
PMBOK (2013) considers the following communication skills as crucial:
•
Actively and effectively listening
•
Questioning and probing for better understanding
•
Educating others to enhance team knowledge for effectiveness
•
Fact-finding to confirm information
•
Setting expectations and managing them
•
Persuading others and teams to perform actions
•
Motivating, encouraging or reassuring others
•
Coaching for performance and results
•
Negotiating for mutual agreements
•
Resolving conflict to prevent disruptions
•
Summarising, recapping, and identifying the next steps
Communication within a project is critical. While there is much verbal communication going on at all times in a
project, it is imperative that there is a strong and strict written communication system. All meetings must have
minutes which accurately reflect the proceedings of the meeting in sufficient detail.
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Copies of the minutes must be sent to all participants, whether they have attended the meeting or not. Any requests
for scope changes, irrespective of where they have come from, must also be noted in detail in the minutes. Activities
in a project refer to the types of work the project team may do. These activities include communicating, planning
and controlling.
5.3
Developing a Project Communication Plan
According to Larson and Gray (2014), project communication management is concerned with the ways in which
communication is done on a project. They argue that good communication can be seen when all stakeholders are
kept informed on a regular basis on progress as well as challenges. Table 5 exemplifies a Project Communication
Plan.
Table 5: Communication Plan
What information
Target Audience
When
Method
of Provider
Communication
Milestone report
Senior Manager
Team status report
Project
Monthly
manager Weekly
Email and hardcopy Project Office
Email
Team recorder
and project office
Project communication management entails the following:
•
Communications planning – identifying the information needs of stakeholders, this involves asking
questions like when will the information be needed and how will be provided to the stakeholder?
•
Information distribution – ensuring that information is accessible to stakeholders and provided
timeously
•
Performance reporting – this entails collecting and disseminating performance information in the form
of status reports and forecasts
•
Administrative (Project) Closure – entailing generating and gathering on experiences – what worked
and what did not
Documentation in project management is important as evidence. Documents can be in the form of plans, business
cases, and project charters and so on and it is important to file them and have version control mechanisms (Larson
and Gray, 2014). There are essential communication skills which a Project Manager should have. These include
building relationships with stakeholders, listening and being reflective (Larson and Gray, 2014). Challenges with
communication in future include issues of confidentiality of project information, written communication shortened
in text messages and Facebook while losing its meaning and how best to control the flow of project information
(Larson and Gray, 2014). The next section looks at Risk.
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5.4
Risk
Risk: is defined as “The effect of uncertainty on objectives”. Put differently, risk is uncertain or chance events that
planning cannot overcome or control.
5.5
Risk Management
Risk Management relates to a proactive approach to identifying and managing events within the internal
environment and threats in the external environment with a likelihood to affect a project’s outcomes and success.
It entails asking questions like: What can go wrong (risk event); How to minimise the risk event’s impact
(consequences); what can be done before an event occurs (anticipation); what to do when an event occurs
(contingency plans) (Larson and Gray, 2014).
Pinto (2016) is of the view that Risk Management has four stages, namely,
Risk identification: this involves unpacking risk factors which may affect the project;
Analysis of probability and consequences: entails measuring/estimating the likelihood of occurrence and impact
on the project;
Risk mitigation strategies: Measures taken to minimise the effects of risk factors;
Control and documentation: this entails creating a database which contains lessons learned for use in future
projects.
There are five primary causes/sources of risk. According to Pinto (2016), these are:
Financial risk - big projects come with heavy financial outlays and these pose a risk;
Technical risk - some projects are new and the technologies being used are new and not tested;
Commercial risk – the profitability of a new product or service is not known in advance. Customers may accept,
be ambivalent or reject it.
Execution risk – geographical or physical conditions may prove to be a hindrance say in mining or agriculture.
Contractual or legal risk – in circumstances where strict terms and conditions are stipulated upfront, such as
fixed cost or cost plus terms, it is difficult to re-negotiate the terms and conditions should circumstance change for
the worse.
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Pinto (2016) identifies four Risk Mitigation Strategies with respect to how risk should be addressed. The four
mitigation strategies are:
Accept Risk: these are factored in but with no action being taken because the likelihood of occurrence is minimal
and their impact is insignificant. Pharmaceutical/drug producers produce drugs some of which are not viable, but
they still produce drugs.
Minimise Risk: this can be done by working with suppliers to ensure that you get the best quality products. Boeing
works with its suppliers to minimise risk.
Share Risk: This can be done through partnerships with other organisations by sharing components of the project
for joint execution. Risk can also be shared between suppliers and customers for example in ‘Built-Own-OperateTransfer’ arrangements. For example, a private firm can operate a bridge in which users pay toll fees, but over a
specified time frame, the bridge will be transferred to government.
Transfer Risk: Risk can be transferred to another party such as an insurance firm.
Other mitigation measures include mentoring junior staff by pairing them with senior members to learn best
practice. Cross training is another strategy in which personnel are trained to play a different role or that of their
colleagues so that they can fill in their position when absent so that there are no disruptions to operations.
Mitigation strategies should apply to all forms of risk.
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Projects can be slotted into categories using a Risk Impact Matrix as shown in Figure 24 below.
Consequences
Low
medium
High
High
D
Likelihood
Medium
B
C
Low
A
Figure 24: Risk Impact Matrix
Project D is high risk with a high likelihood to occur and therefore would require detailed contingency planning
because it can harm the project. Project A is low risk thus gets a proportionate response. The matrix allows the
project team to focus on areas where risk is high.
Based on their impacts, risks can be tabulated by objective (Cost, Time, Scope and Quality) on an impact scale as
shown in Table 6 below.
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Table 6: Risk Tabulation
Impact
Project
Very low
Low
Moderate
High
Very High
Objective
Cost
Time
Scope
Quality
Funds have to reduce the impact of risk are set aside in Contingency Funds which are usually in three streams: a
fund to cover project risks, budget reserves and management reserves. Delays are also taken into account through
the creation of time buffers.
Contingency funding can take the form of:
•
Funds to cover project risks – identified and unknown
•
Budget reserves for identified risks specific to work packages
•
Management reserves are large funds to cover major unforeseen risks (e.g. change in scope) of the total
project
•
Time buffers which are amounts of time used to compensate for unplanned delays in the project schedule
(Larson and Gray, 2014)
5.6
Risk and the Risk Management Cycle
Fig 25 shows a variant of a Risk Management Cycle. It shows that there is need to do a project analysis which
entails a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis to uncover the opportunities and
threats (risks) within and outside the organisation. Risk Identification, Evaluation, Management and Monitoring
then ensue. The sequence is cyclical as new risks may emerge.
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Figure 25: Risk Management Cycle
Source: Adapted from Larson and Gray, (2014)
Within the context of the Project Risk Analysis and Management (PRAM) process, Pinto (2016) identifies nine
phases namely:
•
Define (the project)
•
Focus (on risk specific to the project)
•
Identify (sources and responses to the risk)
•
Structure (prioritise risk)
•
Clarify ownership of risks (distinguish what the firm will bear and what others would)
•
Estimate (costs)
•
Evaluate (results)
•
Plan (do a project risk plan) and
•
Manage (monitor progress and respond to variances) (For more detail, see Pinto, 2016: 261)
5.7
Tools and Techniques of Risk Management
Some of the tools and techniques used in Risk Management include
78
•
Analytical techniques
•
Expert judgment, Meetings
•
Documentation reviews
•
Information gathering techniques
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5.8
•
Checklist analysis
•
Assumptions analysis
•
Diagramming techniques
•
SWOT analysis
•
Expert judgment
•
Risk probability and impact assessment
•
Probability and impact matrix
•
Risk data quality assessment
•
Risk categorisation
•
Risk urgency assessment and
•
Quantitative risk analysis and modelling techniques (for elaborations See PMBOK, 2013: 312)
Summary
This Unit loked at Communication and Risk Management in Project Management. It showed that poor
communication can reslut in misunderatsnings between stakeholders hence the need to have a Communiocation
Plan. It also looked at risk and oresented risk mitigation measures. It also presented the tools and techniques used
in risk management. The next section will look at Leadership, Teams and Stakeholder Management in a Project
Environment.
Knowledge Check Questions
1. Communication is important in Project Management. Using examples,
discuss this statement
2. Pinto (2016) identifies four Risk Mitigation Strategies with respect to how risk
can be addressed. Discuss these four mitigation strategies giving examples
Case Study
How DEWA Increased Efficiencies and Value Using Streamlined Project Management
Processes
Created in 1992, Dubai Electricity and Water Authority (DEWA) has evolved and grown
as the city of Dubai became the flourishing global hub of business activity for the Middle
East and Northern Africa it is today. This unprecedented growth presented a challenge
as the organisation faced increasing complexity along with the already daunting task of
providing water and electricity services to a region with a population of over 2 million.
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As more and more projects were initiated, DEWA’s leadership discovered that standard
project management practices were not being observed across the organisation, leading
to decreased efficiencies, tempered innovation, redundant data, and an increased
administrative burden on employees. DEWA addressed this by implementing a greater
number of PMI certification holders and adhering to proven project, program and
portfolio management practices, thus reducing risks, cutting costs and improving
success rates.
Visit the link below to study the complete case and attempt the questions that follow.
https://www.pmi.org/business-solutions/case-studies/how-dewa-increased-efficiencies
Questions
1. Learning from DEWA’s experience, explain the benefits of adhering to proven project,
program, and portfolio management practices
2. Describe the improvements DEWA highlight that show their successes
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Answers to Activities
Answers to Knowledge Check Questions
The answer to the question 1 is found in section 5.2.
The answer to the question 2 is found in section 5.5.
Answers to Case Study
1. Learning from DEWA’s experience, explain the benefits of adhering to proven project, program, and portfolio
management practices
In this case, DEWA’s leadership knew that adhering to proven project, program, and portfolio management
practices reduces risks, cuts costs, and improves success rates.
2. Describe the improvements DEWA highlight that show their successes
•
Reducing the monthly closure of accounting books from 20 days to five
•
Budget checking from three days to one minute
•
The number of steps in the utility connection process from nine to one
•
The time it takes to move purchase requisitions into the payment cycle from 60 days to 15
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Unit
6:
82
Leadership Teams and
Stakeholder Management
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Project Management
Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
6.1 Introduction
•
Introduce topic areas for the unit
6.2 Leadership Styles
•
Discuss the various leadership styles
6.3 Differences between
•
Differentiate between management and leadership
•
Discuss the leadership skills required for effective project
Management and Leadership
6.4 Leadership Skills Required for
Effective Project Management
management
6.5 Team Formation and Dynamics
•
Evaluate team formation and dynamics
6.6 Stakeholder and the Stakeholder
•
Articulate the stakeholder and the stakeholder management
Management Process
process
•
6.7 Summary
Summarise topic areas covered in unit
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
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•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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6.1
Introduction
The functions of management are to plan, organise, coordinate and control the resources they are responsible for,
in order to achieve the organisation’s goals. These resources are the financial, human and equipment resources
of the organisation. Whereas, leadership is the ability of one person to influence the human resources of an
organisation so that they achieve the organisation’s goals in the most effective and efficient way possible. As such,
leaders are critical to a project, as they can be the difference between success and failure. Good leaders can
reverse a poor project and make it successful, simply through their ability to influence the people involved in the
project.
6.2
Leadership Styles
Definitions of leadership
In years gone by, leadership was generally only associated with great military and government leaders. However,
leadership today is understood to happen at every level of society including in communities and in business.
Lao Tse, Tao Te Ching had this to say about leaders and leadership:
‘The superior leader gets things done with very little motion. He imparts instruction not through many words but
through a few deeds. He keeps informed about everything but interferes hardly at all. He is a catalyst, and though
things would not get done well if he weren't there, when they succeed he takes no credit. And because he takes
no credit, credit never leaves him.’
This excerpt shows that good leaders are not doers, but rather earn the reputation of being good leaders through
the good work of their followers or employees. He also indicates that being humble is an important characteristic
of a good leader.
Murray Johannsen said:
‘Managers have subordinates—leaders have followers.’
There are number of leadership styles. These include democratic, autocratic, transformational, bureaucratic,
transactional, laissez-faire, authoritarian and servant leadership. These styles shall briefly be presented below.
A democratic leader includes others in decision making. He/she leads by the vote as decisions are based on
consensus with team members. It is s good type of leadership to the extent that it gives others a voice. This does
not mean that he/she does not have the final say.
An autocratic leader is the opposite of democratic. He does not consult and makes the final decisions. Employees
are expected to conform.
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A transformational leader is always transforming and improving and asking for more by motivating employees to
reach or exceed their best.
A transactional leader rewards employees for work done by providing incentives such as bonuses to them. It is
more like a case where he/she says, a good gesture deserves another.
A bureaucratic leader goes by the books. He is considered to be better than an autocratic leader. Employees
under his authority feel that their freedoms are threatened. He lacks flexibility.
A laissez-faire leader gives free rein to employees. He/she delegates and is good for organisations that are into
innovation.
An authoritarian leader is one who is powerful; he/she is the boss. He/she may increase productivity but may see
a reduction in employee morale. He/she rules groups with authority.
A servant leader believes he/she is the servant of the people and is there to serve them. He/she believes that it
is not the other way round – where people are there to serve their leaders.
A good leader
Overall, leaders have many roles and skills other than those considered in the above definitions. A good leader
needs to be empathetic. As importantly, a good leader needs to be able to use empathy in an intelligent way.
Today we speak of good leaders as having emotional intelligence. A good leader is someone who has a strong
sense of ethics. Ethics is difficult to describe but someone who is transparent in their actions, accountable and
responsible for their actions, honest and has integrity, can be said to be ethical.
A good leader needs to be assertive. Leaders should know what they want and where they are going. They also
need to be focused on doing just that. When they are not assertive, they lose control of people under their authority.
It is important to note that being assertive does not mean that you spend time screaming and shouting at people.
That is the sign of a poor leader. Leaders also have to be objective. They must not allow their personal feelings to
influence decisions, and must always do what is right for the organisation. It is not easy to be objective at all times.
Situational leadership is valued as an important leadership ability. Situational leadership refers to the way in which
leaders need to change their style to suit the situation. Sometimes leaders need to be assertive and give clear
instructions on how things must be done. At other times, leaders need to guide people to the answer, letting them
find the answer to the problem. The secret lies in knowing when to use the correct approach for the problem
currently at hand.
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Leaders normally have specific roles, which are their responsibility, in an organisation. The leader of the
organisation is often required to have a vision for the organisation. The vision is where the leader wants the
organisation to be, or what the leader wants the organisation to be in the future. The leader should unify the people
working within the organisation and unite them in their efforts to achieve a common cause, goals, and objectives.
The leader needs to do so by being self-motivated and by motivating people to want to achieve the common cause,
goals and objectives. The leader needs to create synergies between departments and if applicable, between
businesses, in order to maximise the efforts, effectiveness and efficiencies of all the efforts to achieve the common
cause, goals, and objectives. A further role of the leader is to create an organisation that allows people to grow
with the organisation and, at times, beyond it. Finally, a leader should be innovative and creative. An organisation’s
vision must be based upon innovation and creativity, in order to find a way to be different from their competitors,
which will in turn lead to better profit margins. The leader must be opportunity aware, and must always be looking
for opportunities for the organisation. (Mtapuri et al, 2008).
6.3
Differences between Management and Leadership
The functions of management are to plan, organise, coordinate and control the resources they are responsible for,
in order to achieve the organisation’s goals. These resources are the financial, human and equipment resources
of the organisation. The leader of an organisation creates the vision for the organisation. The vision is the broadest
possible outline for where the organisation is attempting to go and what the organisation is attempting to be. This
is the leader’s role as a planner. The vision can be seen as a painting or drawing of the future of the organisation.
However, the leader is merely preparing a map showing where the organisation is and where it is going. The
managers in the organisation are responsible for getting the organisation there. To do so, the managers need to
translate the organisation’s vision, mission, goals and objectives into a series of appropriate strategies and action
plans. The managers need to create strategies for each department in the organisation. This falls into the
manager’s role of planning.
Depending on the size of the organisation, each level of management will reduce the information received from
the level above into more specific detail to suit their role in the organisation. The leader, normally the Chief
Executive Officer (CEO), will be responsible for the vision together with the directors if there are any. The line
managers, for example the financial manager and the marketing manager, will translate the vision into a
departmental vision goals and objectives. The managers beneath them will, in turn, translate the departmental
vision goals and objectives into departmental strategies and action plans. The situation for small business owners,
however, is that they have to do it all. That is what makes a small business so challenging, and why it is so difficult
to succeed and grow a small business.
Within every organisation, there are limited resources. Resources include people, money, equipment and time.
There is always too little of at least one of these to accomplish one or other goal or objective. Every organisation
will experience shortages of one or other resource at some time.
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The smaller the organisation, the more likely it is to have a shortage of resources. A large organisation is more
likely to suffer from a shortage of people than cash, but it is still a shortage. The manager’s role in an organisation
is to manage the resources. The manager needs to allocate the resources according to where they will be best
used, always remembering that they are best used when trying to achieve the organisation’s vision. The manager
should administer and organise the resources, so that the resources are used in the most effective manner
possible. The manager should organise the organisation’s systems to ensure strict control of the resources and
also to create a suitable organisational structure that will get the best of the people in the organisation. This might
make you think there are only leaders at the top and that managers are not leaders. This is not true. Leaders can
be found throughout an organisation. Leaders are everywhere, and a good organisational leader will find these
people and use them to help lead the organisation forward to achieve the vision. Every organisation needs team
members, team leaders and managers.
Every project should have a project manager. The project manager has a difficult job. The project manager usually
has to manage very limited resources, particularly time, as every project has a start and end date. The project
manager may be a good leader and, if so, should find the project easier to manage. If the project manager is a
poor leader, there may well be other people within the project team who are good leaders, and they will indirectly
help the project manager to complete the project on time. The leaders should help motivate and drive the people
on the project to successfully complete the project on time. The project manager, as a manager, will be solely
responsible for ensuring that there is sufficient cash, people and equipment in the right place at the right time to
complete the project on time. A leader should lead by example. Figure 26, shows some qualities found in leaders
who lead by example.
Figure 26: Leading By Example
Source: Larson and Gray (2014)
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6.4
Leadership Skills Required for Effective Project Management
Leaders are not all the same. It is important for a good leader to be able to apply leadership skills to suit the
situation/context. The context is influenced by the people, the problem and the constraints. The same problem may
be handled in very different ways depending on the people involved. Similarly, the constraints of a project will
influence how the leader responds to problems. If it affects the final completion date or cost, the project manager
is more likely to be harsh in responding to a problem, than if the problem does not affect these constraints.
Directing
If the project manager simply instructs people on what must be done, this is known as directing. The leader directs
people as to what must be done. This is a no-nonsense approach: ‘Here is the problem, get it done, these are your
constraints.’
Coaching and supporting
However, if a leader believes that a team member lacks sufficient knowledge, experience and/ or skill, they might
coach the team member, helping him or her to find the solutions to their problems. The leader might even provide
additional resources to the team member in an attempt to support the team member in his or her effort to solve the
problem. Leaders will show the team member where the core of the problem is, and then help him or her to
understand how to solve the problem.
Delegating
Sometimes the task may be small or lacking in importance, in which case the project manager may delegate the
task to someone else to complete.
Situational leadership
Project managers use the directive style most of the time. However, a project manager who has good leadership
skills will use a variety of styles and behaviours, depending on the situation. In other words, they will be good
situational leaders. It is no longer considered acceptable to say ‘Well I have to direct them, and if they do not like
it, tough.’ There is a direct link between being able to apply situational leadership and emotional intelligence.
According to Larson and Gray, 2014), the following are the traits of a good leader:
He/she is a systems thinker (one who recognises that entities and phenomena are interconnected or related);
•
Has personal integrity
•
Is proactive
•
Has high emotional intelligence
•
Has a general business perspective
•
Can effectively manage time
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•
Is a skilful politician and
•
Optimist (Larson and Gray 2014)
The next section looks at teams.
6.5
Team Formation and Dynamics
Projects are team initiatives, and effective teams are difficult to establish. Teams require time, something which
projects seldom have to spare, to become effective. This makes the process of team building more difficult in a
project environment. But understanding that they are team initiatives is the first step in making the team and the
project work well. This section provides an understanding necessary to identify the roles and qualities of a good
team member, as well as the behaviours that make for a good team member.
Stages in the development of a team
All teams go through a number of stages in their development. In the first stage, the team is created. Initially
everyone listens to the team leader who spends the time during this initial period explaining the project goals and
objectives, the team’s goals and objectives and the role of each team member in the team. At this stage the team
leader does most of the talking and the team members most of the listening.
Once the objectives and each member’s role in the team is understood, the team goes into the second stage of its
development. In this stage, the team members start to discuss how they will achieve the team objectives. This
stage can run smoothly, or it can become a difficult stage for the team members. During this stage, the team
members may start to show how much they do or do not know. Team members may try to assert themselves. This
may lead to conflict between members who both believe they are more knowledgeable than anyone else on the
topic. This situation may sort itself out as one person allows the other to be the expert. In a worst-case situation,
the team leader will have to make the decision and appoint someone as the leader. Normally these situations sort
themselves out through discussion. Once everyone knows who is who, who is best at what, and who will do what,
the team becomes a proper team and starts to find ways of achieving the team objectives (Mtapuri et al, 2008).
Criteria and behaviours for working as a team member
The difficulties of working in a team vary according to the type of team. In an internal organisation team, it is likely
that team members know each other, or have worked together previously on a team project. These team members
are often more tolerant of each other, and more eager to work with each other, as they know they are part of the
same organisation, and that to be difficult could create problems within the organisation. A team created with
people from many different departments in the organisation, might experience people problems, because they all
have different goals and objectives.
It is often more difficult to make and keep effective a team that is made up of people from inside and outside the
organisation, who may have no previous knowledge of each other nor have worked together.
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Characteristics of effective team members
When you factor in the number of language groups, religions, tribes, countries of origin and a wide variety of other
factors, there are a whole lot more ways of seeing people and each other. All these factors can result in team
members having different ethical values, norms and social standards. What one group may find acceptable is not
always acceptable to another group. For example, some people might believe that if you have a job that allows
you to employ people, it is your duty to employ your own family wherever you can. Other people might believe you
should only ever employ the best person for the job, and should never employ your own family. This can lead to
confusion and conflict. Conflict due to cultural differences is often a source of problems. Mandela’s vision of a
Rainbow Nation is an excellent example of cultural tolerance.
It is important for team members to be tolerant of the diversity of fellow team members. Positive attitudes,
perseverance, non-judgemental conduct, and clear communication are also abilities that team members need to
have, in order to work successfully within a team. Team members also need to be sensitive to other people’s
needs, and to try and see things from the other person’s position. Team members need to be attentive to each
other’s needs and feelings, be positive in their dealings with and criticisms of each other, and find ways to build
each other up.
Efficiency and support systems in a team
Teams can become useless or dysfunctional. If a team never gets through the second stage where the members
settle into a hierarchy of knowledge and leadership, they will be dysfunctional. If team members change during a
project, it can lead to the team being temporarily dysfunctional until they settle into a team again. This could take
a few minutes, a few days or longer. A team member may become offended by another team member who was
not empathetic or understanding enough regarding a cultural, religious or ethical issue. This could lead to the team
members becoming so angry with each other that they cannot reconcile their differences.
Dealing with differences within the team
Team members are supposed to work with each other. If a team member is not doing things the right way, someone
needs to tell him politely. It should be seen as negative criticism of their work. Obviously, there are some people
who do not care, are disinterested, nor are they team players. In their case, if he/she cannot be changed in their
thinking, and nor can the team leader, they might have to be removed from the team. Remember members have
to be empathetic towards other team members. If conflict arises in a team, it is best that the team resolve the
issues through discussion. If the team cannot resolve the conflicts, then the team leader needs to address the
people who are in conflict with each other, and assist them in resolving the conflict. If this cannot be done, then the
team leader might have to resolve the conflict situation, and make a decision on how to solve the conflict. In an
extreme situation, the team leader might have to remove a team member from the team and replace him or her.
In the event the team leader is unable to resolve the problem, he may have to ask the project manager to resolve
the problem.
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Strategies for dealing with issues in a team
How can problems in teams be solved? What support systems are available to help the team out of this bad
situation? The first support system, and often the best, is the team itself. The team leader should get the two
members who are in disagreement to sit down as a team and resolve the issue. By talking about the issue, there
is a possibility that the conflict will dissipate and the team will become functional again. If this is unsuccessful, the
team leader needs to get involved. The team leader needs to sit with the two parties to discuss the problem. The
team leader should explain how he or she has assessed the situation, and then together with the team members,
work out a way forward. In the event the team leader is unable to resolve the differences, he or she should seek
advice from the project manager. If that does not work, one of the parties might have to be moved from the team.
The strongest support system is the team itself, and that support system gets stronger the stronger the team is,
the more cohesive the team is.
Team dynamics
The team will always be something that may work one minute, and might not work the next minute. This is simply
because there are people in the process, and people have the ability to think and act. The relationships that build,
or exist, between team members will influence the way they operate, both independently of each other, and
together with each other. The skills level of a team member might make people ignore him or her because they
think he or she is incompetent. A team member might have so many skills that everyone just leaves those tasks
to that person as the ‘expert’, creating an overload of work for that person. Team members may think the team
goals and priorities are unrealistic and lose hope of meeting them, and then their performance will drop. The roles
allocated to each team member may not be the best way to use their skills, and this could lead to dissatisfaction
within the team. The way the team is structured could also lead to dissatisfaction within the team. If a team has
too much formalities it could make things happen slowly and result in objectives not being met. Too little formality
could result in chaos and in objectives not being met. Communication channels between the team leader and the
team members must be good and also easy to use. If it becomes too much trouble to communicate, people simply
will not, and that will lead to team failure. Too much communication can also lead to very little being achieved, so
teams should be careful of having too many unnecessary meetings occurring.
Teams need to be flexible, in order to meet changing circumstances. A lack of flexibility, especially by the team
leader can lead to team failure. Teams also need to function well as a team, and not as a group of individuals. A
team is cohesive when everyone works for what is in the best interests of the team. If all these things are happening
in a positive manner, then the team members will have high levels of trust, low levels of conflict and strong and
mutually beneficial relationships with each other. The more teams work together, talk together, plan together and
decide together, the more cohesive the team becomes, and the more efficient and effective the team becomes.
Positive feedback is essential for team success. If team members see something is wrong or could be wrong, they
need to ensure that the team know and understand this as soon as possible, so that the team can take corrective
action as soon as possible. The best way to have feedback sessions is through regular meetings of the team
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members. It is best to give feedback in a non-stressful environment. Obviously if it is important to stop someone
creating further problems immediately, then the matter must be addressed immediately. However, if there is time
available, it is best to discuss the matter when it is not a crisis. Remember it is natural for human beings to be
defensive about their actions. No one likes to think they are stupid or making mistakes. If someone talks to them
while they are doing something wrong, they may react defensively, whereas if they are in a meeting environment
and the topic is discussed without finger pointing, then the chances are that the matter can be resolved in a way
that causes no conflict. The team can develop team spirit over time. Team spirit can be improved through
socialising outside the work environment, and special activities can be organised for this purpose. Trust is critical
for team success, and the easiest way to trust people is to get to know them, which is why socialising is sometimes
a good solution. The next section looks at stakeholders.
6.6
Stakeholder and the Stakeholder Management Process
•
Key Definitions Stakeholder: Any group or individual, both internal and external to the organisation,
who might influence and in turn be influenced by a particular project's outcome and on whom the PM
ultimately therefore depends for the success of the project
•
Urgency: The degree to which a stakeholder claim calls for immediate attention. Urgency may be based
on time sensitivity (the degree to which a delay in attending to the claim or relationship is unacceptable
to the stakeholder) or criticality (the importance of the claims or the relationships to the stakeholder)
•
Definitive Stakeholder: A stakeholder with high levels of power and interest in a project
•
Dormant stakeholder: A stakeholder who has high levels of power but low levels of interest in a project
•
Expectant Stakeholder: A stakeholder with moderate levels of power and interest in a project
•
Interest: The stakeholder's opportunity and willingness to act on their power. This, in turn, depends on
the nature (legitimacy) and urgency of the stakeholder's claim
•
Interested stakeholder: A stakeholder who has high levels of interest but low levels of power in a project
•
Latent Stakeholder: A stakeholder with relatively low levels of power and interest in a project
•
Legitimacy: The nature of a stakeholder's claim on a project. This claim may be based on contractual
relationships, or whether the stakeholder has something at risk (perceived or otherwise) as a result of the
project
•
Marginal stakeholder: A stakeholder who has relatively low levels of power and low levels of interest in
a project
•
Pivotal stakeholder: A stakeholder with a high level of power and high level of interest in a project. This
type of stakeholder plays a major role in the project
•
Power: The relationship in which one social actor, A, can get another social actor, B, to do something
that B would otherwise not have done. For example, in a project environment power is held by someone
who has the ability close the project (coercive), or someone who can provide a lot of expertise (utilitarian),
or someone who can command the attention of other key stakeholders (symbolic)
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Larson and Gray (2014), define a stakeholder as any group or individual, both internal and external to the
organisation, who might influence and in turn be influenced by a particular project's outcome and on whom the PM
ultimately therefore depends for Urgency. Urgency is the degree to which a stakeholder claim calls for immediate
attention. Urgency may be based on time sensitivity (the degree to which a delay in attending to the claim or
relationship is unacceptable to the stakeholder) or criticality (the importance of the claims or the relationships to
the stakeholder). For any project to be a success, it is important that good relations between stakeholders and
team members are built and maintained. This section will give you the understanding necessary to be able to
establish relations between team members and stakeholders. Fig 27 shows the stakeholder management process.
Figure 27: The Stakeholder Management Process
Source: Larson and Gray (2014)
There are various stakeholders in any project:
•
The sponsor of the project - This is the person who decides the need for the project, and who then ensures
that the organisation makes the decision to proceed with the project. This person is also the champion of
the project and ensures that all stakeholders remain in favour of it
•
The organisation which owns the project - Whether the project is been completed by internal staff, external
contractors, or a combination of the two is irrelevant. The owner of the project normally sets the goals and
objectives for the project
•
The team leaders for the different teams in the project - Remember that one team can lead to project
failure, so close liaison between teams is essential. Team leaders must ensure that they respect one
another, and they must believe that the teams will deliver on their objectives
•
Project management team - The team leaders themselves form another team in the project, with the
project manager as the team leader. Success for the team leaders means they stand a chance at being
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used as a project manager at a later stage, and the project manager stands a chance of getting bigger
projects to manage
•
The beneficiaries - These are the people who will benefit from the project. In an organisation installing a
new computer, the staff members who will use the new computer are stakeholders. People in a village
getting electricity from an electrification project are stakeholders. They want the project to succeed so
they can get the benefit of the project’s output
•
The suppliers and contractors to a project - The suppliers and contractors want the project successfully
completed because then they get paid what is due to them and they can then add the project to their list
of successes
•
The team members - Team members want to see the project successfully completed. If it is then they can
proudly say ‘We did that’
The list is not exhaustive as there are other stakeholders such as Government. There are variants of stakeholders
as shown in the key definitions section. It is important that all team members understand who the stakeholders
are, and what the benefits for each of them are. The project manager has a commitment to deliver the project
completed in line with the project owner’s objectives. Within the project team, it is generally only the project
manager who liaises and builds relationships with other stakeholders. However, there are times- depending on
the type of project, when the team members will interface with the beneficiaries. For example, team leaders
designing a new computer system would have to ask the beneficiaries what they want, and would need to spend
a lot of time understanding their needs. However, the builders of an enormous hydroelectric dam will not meet
with the people who are going to get electricity from the dam. It is difficult to predict the interaction between
stakeholders in advance, but in any of these interactions all stakeholders must respect each other and their
opinions. Like any team, stakeholders should work through their differences, should they occur, in a constructive
manner. Larson and Gray (2014) argue that relationships between parties are dynamic, and the links with
stakeholder need to remain relevant, and that in engaging stakeholders there is need for negotiation and conflict
management skills.
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6.7
Summary
This unit defined various leadership styles. A good leader is empathetic, has emotional intelligence and is someone
with a strong sense of ethics. A leader is expected to have a vision for the organisation representing where he/she
wants the organisation to be, or what the leader wants the organisation to be in the future. He/she should unify the
people working within the organisation for them to be able to achieve a common cause, goals, and objectives.
Managers have to translate the organisation’s vision, mission, goals and objectives into a series of appropriate
strategies and action plans. After differentiating leadership and management, the unit then looked at team
formation and team dynamics. It is evident that teams need to be flexible, in order to meet the needs of ever
changing circumstances. Trust is critical for team success. It also looked at stakeholders and surmised that for any
project to be a success, it is important that good relations between stakeholders and team members are built and
maintained.
Knowledge Check Questions
1. Illustrate with the use of examples the difference between management
and leadership. Provide reasons for your answer
2. Teams work best when they ignore cultural and other differences.
Explain why you agree or disagree with this statement
3
Short Case Study
Sbu is the project manager for a new stadium, which is being built in the city.
Kobus is the construction manager for the contractor responsible for civil works
on the project. Phakamile is the owner of the electrical subcontracting business
and Mary the owner of the painting subcontracting business.
Here is an extract of one of the Project Management meetings.
1. Read through the passage
2. Draw up a list of the people mentioned above. Write down whether you think
they are good managers and good leaders. Justify your answers
3. Identify the strengths, weaknesses, styles of each of the people in this case
study. Explain why you have made these statements
‘Welcome to the 8th project meeting for the Nelson Mandela Stadium, 10th June
2007. Kobus, construction is now a week behind due to the heavy rain we have
had. What are you doing to get back on schedule?’ asked Sbu.
Kobus responded, ‘Yes the rains caused a lot of problems. I cannot control the
weather. However, I will instruct my staff they are doing overtime to catch up
this week. We will be back on track by this time next week’.
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‘OK,’ said Sbu. ‘Phakamile, you are also behind, but you cannot blame the rain.
You are supposed to have finished the electricals in all the entertainment boxes
2 weeks ago. You are obviously battling. Can you and I do a walk around after
this meeting?’
‘Sbu, I would appreciate that. I have had problems and would appreciate your
input; I am here to serve the people’. ‘Phakamile, that is fine. Let us meet after
the meeting’.
‘Let’s move on. Mary, you are on target, but you will have extra work to
complete once Sipho catches up’. ‘Yes we will have. But it will not be a problem.
I will discuss the situation with my staff and we should be able to catch up’,
said Mary.
Case Study
Ducor Chemical
In the autumn of 2010, Ducor Chemical received a research and
development contract from one of their most important clients. The client
had awarded Ducor with a twelve-month, sole-source contract for the
R&D effort to create a new chemical that the client required for one of
its future products. If Ducor could develop the product, the long-term
production contract that would follow could generate significant profits
over the next several years. In addition to various lab personnel who
would be used as needed, the contract mandated that a senior chemist
be assigned for the duration of the project. In the past, the senior
chemists had been used mainly for internal rather than external
customer projects. This would be the first time a senior chemist had
been assigned to this client. With only four senior chemists on staff, the
project manager expected the resource negotiation process with the lab
manager to be an easy undertaking.
Project manager: “I understand you’ve already looked over the technical
requirements, so you should understand the necessity for assigning
your best senior scientist.”
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Lab manager: “All of my senior scientists are good. Any one of them can
do the job. Based upon the timing of your project, I have decided to
assign John Thornton.”
Project manager: “Just my luck! You assigned the only one I cannot
work with effectively. I have had the misfortune of working with him
before. He’s extremely arrogant and unpleasant to work with.” Lab
manager: “Perhaps so, but he got the job done, didn’t he?”
Project manager: “Yes, he did. Technically, he is capable. However, his
arrogant attitude and sarcasm produced a demoralising atmosphere for
my team. That project was about three months in length. This project is
at least a year. Also, if follow-on work is generated, as I expect it to be,
I’ll be stuck with him for a long time. That’s unacceptable to me.”
Lab manager: “I’ll talk to John and see if I can put a gag in his mouth.
Anyway, you’re a good project manager and you should know how to
work with these technical and scientific prima donnas.”
Project manager: “I’ll never be able to maintain my sanity having to work
with him full-time for at least one year. Surely you can assign one of the
other three senior chemists instead.”
Project manager: “I feel like you are dumping Thornton on me without
considering what is in the best interest of the project. Perhaps we should
have the sponsor resolve this conflict.”
Project manager: “My salary, promotion, and future opportunities rest
solely on the success of this one project, not twenty.” Lab manager: “Our
relationship must be a partnership based upon trust if project
management is to succeed. You must trust me when I tell you that your
deliverables will be accomplished within time, cost, and quality. It’s my
job to make that promise and to see that it is kept.”
Project manager: “But what about morale? That should also be a factor.
There is also another important consideration. The customer wants
monthly team meetings, at our location, to assess progress.”
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Lab manager: “I know that. I read the requirements document. Why are
the monthly meetings a problem? But based upon previous experience,
he simply does not know when to shut up! He could cause irrevocable
damage to our project.”
Lab manager: “I will take care of John Thornton. And to appease you, I
will also attend each one of the customer interface meetings to keep
Thornton in line. As far as I’m concerned, Thornton will be assigned and
the subject is officially closed!”
THE PROJECT CONTINUED
John Thornton was assigned to the project team. During the second
interface meeting,
Thornton stood up and complained to the customer that some of the
tests that the customer had requested were worthless, serving no viable
purpose. Furthermore, Thornton asserted that if he were left alone, he
could develop a product far superior to what the customer had
requested. The customer was furious over Thornton’s remarks and
asserted that they would now evaluate the project performance to date,
as well as Ducor’s commitment to the project. After the evaluation they
would consider whether the project should be terminated, or perhaps
assigned to one of Ducor’s competitors. The lab manager had not been
present during either of the first two customer interface meetings.
Questions
1. How do we create a partnership between the project manager and
line managers when project manager focuses only on the best interest
of his/her project and the line manager is expected to make impartial
company decisions?
2. Who should have more of a say during negotiations for resources:
the project manager or the line manager?
3. How should irresolvable conflicts over staffing between the project
and line managers be handled?
4. Should an external customer have a say in project staffing?
5. How do we remove an employee who is not performing as expected?
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Answers to Activities
Answers to Knowledge Check Questions
1. The answer to question 1 is in section 6.3
2. The answer to question 2 is in section 6.5
3. Answers to the case study:
Mary appears to be democratic because she says she wants to consult her staff. Kobus is autocratic as he
mentioned that he is going to ‘instruct’ his staff to catch up with work. Phakamile is a servant leader as she mentions
that she serves the people. Sbu seems to be consulting all the people attending this meeting and qualifies to be
democratic.
Answers to Case Study
1. How do we create a partnership between the project manager and line managers when project manager focuses
only on the best interest of his/her project and the line manager is expected to make impartial company
decisions?
The project manager should not focus solely on the interest of his/her project. It has to be team work. There is
need to negotiate and compromise. In projects, it is a give and take situation. It cannot be your way all the time.
2. Who should have more of a say during negotiations for resources: the project manager or the line manager?
Allocation of resources should be negotiated in the best interest of the organisation and the customer.
3. How should irresolvable conflicts over staffing between the project and line managers be handled?
It should be handled through arbitration, conciliation and mediation.
4. Should an external customer have a say in project staffing?
An external customer should not have a say on staffing because he/she does not know the staff very well.
5. How do we remove an employee who is not performing as expected?
Follow company policy and the Labour Relations Laws. Company is expected to be in line with the labour
Relations Laws and the Constitution of the country.
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Unit
7:
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Quality in Project
Management
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Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
7.1 Introduction
•
Introduce topic areas for the unit
7.2 The Importance of Quality in
•
Discuss the importance of quality in project management
•
Develop a quality management plan
7.4 Quality Assurance
•
Explain quality assurance
7.5 Quality Control
•
Describe quality control
7.6 Quality Management Processes
•
Outline quality management processes
7.7 Summary
•
Summarise topic areas covered in unit
Project Management
7.3 Developing a Quality Management
Plan
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
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•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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7.1
Introduction
Quality is of utmost importance to ensure that a customer is satisfied with the output of the project. Besides scope,
cost, time, quality is of equal importance. Substandard work will not meet a customer’s expectations even if the
project is completed on time, within budget and in line with its scope. It is the prerogative of the project manager
and his team members to ensure that the final product is of high quality and is acceptable to the customer.
7.2
The Importance of Quality in Project Management
Quality is important as much as Scope, Time and Costs as pointers of success in a project as earlier mentioned.
Customers do not want to receive house that have leaking roofs, doors and windows that are difficult to open or
close and walls that are cracking. Quality is a platform for competition as firms nowadays are competing on price,
quality and customer service. Quality is important because markets are very competitive. In such circumstances,
customers go for quality products which promise durability and reliability. Quality products also invite high or
premium prices which translates into revenue with a positive impact on the bottom-line – profit. Quality is good for
customer satisfaction. Customers are inclined to buy quality goods and hence become loyal to that brand.
Therefore, to retain customers, the quality must be high. Quality is also about reputation. Good quality is associated
with a good reputation. Conversely, a poor quality affects the reputation of the brand negatively and leads to a bad
reputation. Customers look for alternatives as they avoid buying a shoddy product. Poor quality also invites
negative publicity in social media and other platforms. Therefore, quality matters.
7.3
Developing a Quality Management Plan
Gido and Clements (2015) emphasise the need for a project quality plan to prevent quality problems in the course
of the project. There must be checks during the course of the project that ensure that the end product will be of
high quality. This is done through checking progress against the specifications, government or industry standards
(in terms of designs, testing and construction). In construction, applicable building codes must be followed.
Therefore, industry standards must be adhered to. The same applies to all electrical work – industry standards
must be followed to the letter. Quality standards should be stated in all project documents and this information
must be made available to all stakeholders including suppliers who should ensure that the provide quality material.
This obligation by suppliers should be stated in the quality plan. The Quality plan should state the project
management tools and techniques which will be used in the project such as inspections, testing, audits and
checklists and so forth.
7.4
Quality Assurance
Is concerned with evaluating performance regularly to instil the necessary confidence in the stakeholders that the
project is being done within the confines of applicable quality standards. The Quality Assurance Process is shown
in Table 7.
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Table 7: Quality Assurance Process
Inputs
Process
Outputs
1. Scope of work
1. Identify Capability
1. Quality Assurance Plan
2. Project design and
specifications
Requirements
2. Training Plan
2. Develop Quality Assurance Plan
3. Project build-method
4. Project execution strategy
Source: Burke (2013: 298)
7.5
Quality Control
Is concerned with monitoring the quality of specific project results regularly by comparing results against standards
in order to correct any mistakes instead of waiting until project completion. This is important because rectifying
substandard work comes with a cost and should be avoided where possible. Shoddy work may entail prolonging
the project’s duration and possible rejection by the customer.
7.6
Quality Management Processes
Burke (2013) opines that Quality Management Planning involves developing a quality plan, a quality control plan
as well as a Continuous Improvement Plan. As such, the Quality Planning Process involves an input/output process
as shown in Table 8 below.
Table 8: Quality-Planning Process
Inputs
Process
Outputs
1. Stakeholder analysis
1. Identify Quality Requirements
1. Quality Assurance Plan
2. Corporate Vision and Value
2. Quality Planning Process
2. Quality Control Plan
Statements
3. Continuous Improvement Plan
3. Business Case
4. Project Charter
5. Operational Configuration
6. Rules and Regulations
Source: Burke (2013: 296)
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‘Quality is “the degree to which a set of inherent characteristics fulfil requirements’ (ISO 9000 cited in PMBOK,
2013). The PMBOK (2013) states that every project should have a quality management plan. In line with ISO,
PMBOK (2013) argues that quality management must ensure that outcomes must meet the requirements with
minimum variation and should take cognisance of importance of customer satisfaction, of prevention over
inspection, continuous improvement, management responsibility and the cost of quality. Re-working and recalls
(for examples of defective vehicles) must be avoided. Preventing mistakes is cheaper than correcting them
(PMBOK, 2013). Figure 28 shows an overview of the Project Management Process reflecting on the Inputs, Tools
and Techniques and Outputs for Planning Quality Management, Quality Assurance and Quality Control.
Project Quality
Management Overview
Plan Quality
Management
Control Quality
.1 Inputs
.1 Project management
plan
.2 Stakeholder register
.3 Risk register
.4 Requirements
documentation
.5 Enterprise
env ironmental
f actors
.6 Organizational process
assets
.2 Tools & Techniques
.1 Cost-benef it analy sis
.2 Cost of quality
.3 Sev en basic quality
tools
.4 Benchmarking
.5 Design of experiments
.6 Statistical sampling
.7 Additional quality
planning
tools
.8 Meetings
.3 Outputs
.1 Quality management
plan
.2 Process improv ement
plan
.3 Quality metrics
.4 Quality checklists
.5 Project documents
Perform Quality
Assurance
.1 Inputs
.1 Quality management
plan
.2 Process improv ement
plan
.3 Quality metrics
.4 Quality control
measurements
.5 Project documents
.2 Tools & Techniques
.1 Quality management
and
control tools
.2 Quality audits
.3 Process analy sis
.3 Outputs
.1 Change requests
.2 Project management
plan
updates
.3 Project documents
updates
.4 Organizational process
assets updates
updates
.1 Inputs
.1 Project management
plan
.2 Quality metrics
.3 Quality checklists
.4 Work perf ormance data
.5 Approv ed change
requests
.6 Deliv erables
.7 Project documents
.8 Organizational process
assets
.2 Tools & Techniques
.1 Sev en basic quality
tools
.2 Statistical sampling
.3 Inspection
.4 Approv ed change
requests
rev iew
.3 Outputs
.1 Quality control
measurements
.2 Validated changes
.3 Validated deliv erables
.4 Work perf ormance
inf ormation
.5 Change requests
.6 Project management
plan updates
.7 Project documents
updates
.8 Organizational process
assets updates
Figure 28: Overview of Project Quality Management
Source: Larson and Gray (2014)
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7.7
Summary
This unit looked at Quality. It emphasises that quality is good for customer satisfaction and for earning their loyalty.
Brands are founded on quality. Therefore, to retain loyal customers, quality must be high. Controls are important
in order to monitor the quality of specific project results regularly by comparing those results against standards in
order to correct any mistakes instead of waiting until project completion. Quality pre-empts recalls and re-works.
The unit emphasises the need for elaborate quality management plans as a prerequisite in environments that
uphold high standards, excellence and exceeding customer expectations.
Knowledge Check Questions
1. Describe how important quality is to 1) Project Manager and 2) to a
customer
2. Describe what is involved in a Project Quality Planning Process
Case Study
Enabling a Customer Centric Experience through Project Management
In 2013, du Telecom and Huawei Technologies signed a Memorandum of
Understanding, to operate what they term a “distributed PMO.” In a region marked by
fierce competition, telecom operators contend with constant change and long-term
uncertainty. This case study illustrates why and how the two companies work together
to define practices in portfolio and project management concepts, processes and
techniques for the telecom industry in the Arabian Gulf. Through their collaboration,
Huawei and du have reduced project failure and increased quality with results that
enable a positive customer experience.
Visit the link below to study the complete case and attempt the questions that follow.
https://www.pmi.org/business-solutions/case-studies/customer-centric-experience
1. How did Huawei and du Telecom work together to improve project management
practices
2. Identify and discuss the benefits for du Telecom and Huawei to use the OPM3
model to accomplish management and control
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Answers to Activities
Answers to Knowledge Check Questions
1. The answer to question 1 is in section 7.2
2. The answer to question 2 is in section 7.6
Answers to Case Study
1. How did Huawei and du Telecom work together to improve project management practices?
As part of the Memorandum of Understanding, Huawei and du work together to improve project management
practices between the two companies through knowledge sharing, exchange visits, and other forms of
collaboration.
2. Identify and discuss the benefits for du Telecom and Huawei to use the OPM3 model to accomplish
management and control?
Organisations turn to OPM3® because it helps them bridge the gap between strategy and individual projects. It
provides a way to advance strategic interests through the application of project management principles and
practices. This generates consistently successful, high-quality projects that achieve their goals in a timely manner.
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Unit
8:
MANCOSA
Project Integration
Management
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Project Management
Unit Learning Outcomes
CONTENT LIST
LEARNING OUTCOMES OF THIS UNIT:
8.1 Introduction
•
Introduce topic areas for the unit
8.2 Integrating Projects with the Strategic
•
Discuss integrating projects with the strategic plan
•
Outline the integration of the process of managing projects
•
Explain the technical and socio-cultural dimensions of the
Plan
8.3 Integration of the Process of
Managing Actual Projects
8.4 Technical and Socio-Cultural
Dimensions of the Project
project management process
Management Process
8.5 Coordinating Change in the Whole
•
Discuss how to coordinate change in a project
•
Summarise topic areas covered in unit
Project
8.6 Summary
Prescribed and Recommended Textbooks/Readings
Prescribed Reading/Textbook
•
Clements, J.P. and Gido, J. (2018) Successful Project
Management. Seventh Edition. Cengage Learning.
Recommended Readings
•
Pinto, J.K. (2016) Project Management: Achieving Competitive
Advantage. Fourth Edition. Edinburgh: Pearson Education
Limited.
•
Larson, E.W. and Gray, C.F. (2014) Project Management: The
Management Process. Sixth Edition, McGraw-Hill International.
•
Burke, R. (2013) Project Management Techniques. College
Edition. Hampshire: Burke Publishing.
•
PMBOK (2013) A Guide to the Project Management Body of
Knowledge. Pennsylvania: Project Management Institute.
•
Burke, R (2021) Project Management Techniques - Artificial
Intelligence. Fourth Edition. Burke Publishing.
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•
Project Management Institute. (2021) A Guide to the Project
Management Body of Knowledge (PMBOK® Guide). Seventh
Edition. Project Management Institute.
•
Pinto, J.K. (2021) Project Management: Achieving Competitive
Advantage. Fifth Edition. Harlow:Pearson.
•
Larson, E.W. and Gray, C.F. (2020) Project Management: The
Management Process. Eight Edition. McGraw-Hill International.
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8.1
Introduction
It is important to have a bird’s eye view of the whole organisation. This will allow the leadership and management
to align projects with organisation’s strategy, resources and capacities. Having such a broad view of the
organisation is prudent to allow for integration to be achieved. Without such broad insights, it is hard to achieve
the organisation’s overall strategic goals. Integration allows management to have a firm hold on all project activities
across the firm. The seven stages of project integration are shown in Figure 29.
Stages
Explanation
Develop Project Charter
Developing the Project Charter initiates the project
Develop Preliminary Project Scope Statement The preliminary project scope statement is an initial,
high-level definition of the project scope.
Develop the Project Management Plan:
Developing the Project Management Plan includes all
activities needed to create and integrate all the plans
into the Project Management Plan
Direct and Manage Project Execution:
This is the implementation phase where the “actual
work” of the project gets done.
Monitor and Control Project Work
During this phase, the project's progress is measured
and any corrective or preventative actions needed to
ensure that all project objectives are met.
Integrated Change Control
Integrated Change Control is the change control
process for the project which includes evaluating all
change requests, authorising changes, and managing
changes to project plans and deliverables i.e. the
outcomes of the project
Close Project
Closing the project equates to completing all project
activities, delivering the final project, turning over
continual support to operations, and obtaining the
client’s approval to formally close the project.
Figure 29: The Seven Stages of Project Integration
Source: Larson and Gray (2014)
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8.2
Integrating Projects with the Strategic Plan
Projects are the way in which strategy is implemented. Larson and Gray (2014) observe that in circumstances
where strategic planning is done by one group of managers, selection of projects by another group, and execution
is by a different group creates conflict and confusion within the firm. As such, there ought to be strategic alignment
between the portfolios, programmes and projects. In other words, it is imperative to have strategic alignment with
portfolio management and project management as shown in Figure 30.
Figure 30: Integrated Management of Projects
Source: Larson and Gray (2014)
8.3
Integration of the Process of Managing Actual Projects
Integration makes it possible for the organisation to use its resources efficiently and effectively. If projects are
prioritised and are aligned to the organisation’s strategic goals, projects that do not add value to the organisation
will receive less priority and will not be executed. Such projects represent a waste to the organisation – waste in
terms of both human, capital and material resources. Larson and Gray (2014) argue that only projects that add
value to the firm should be executed and therefore the selection process should be systematic, transparent, open
and balanced.
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8.4
Technical and Socio-Cultural Dimensions of the Project Management Process
Project Management has technical and socio-cultural dimensions. The technical dimensions relate to formal
processes of planning, scheduling and controlling entailing the development of the project scope, the Work
Breakdown Structure (WBS), Schedules, Resource Allocation, creation of Budgets and writing of status reports.
The WBS has all the work packages and deliverables for the whole project which permits allocation of both human
and financial resources. These project management tools and techniques provide the means through which
integration of effort is made possible. This allows any changes to be traced to their source (Larson and Gray,
2014). It is imperative for the project manager to be well versed in the technical dimensions of the project
management process – the hard skills.
The socio-cultural dimension encompasses issues of leadership, problem solving, teamwork, negotiation, politics
and customer expectations. These are considered the subjective dimensions but equally important. These are
what are commonly called the soft skills. It is incumbent upon the Project Manager to create that temporary
environment within projects where people are able to work and collaborate together; an environment in which
he/she allows their talent to shine and create harmony in diversity. Fig 31 shows the dimensions.
Figure 31: The Technical and Socio-cultural Dimensions of the Project Management Process
Source: Larson and Gray (2014)
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The project manager has to network with people outside the organisation such as government people and subcontractors. He/she has to take their perspectives into account and meet their expectations. This implies that the
project manager must possess both the hard and soft skills.
8.5
Coordinating Change in the Whole Project
PMBOK (2013) notes that performing integrated change control is a process that involves reviewing, approving,
managing all change requests and communicating them to the appropriate quarters. These are change requests
to deliverables, project documents, the project management plan and so on. The changes can either be approved
or rejected. Such a system allows changes to documents in an integrated way and thereby reducing project risk.
Such risk increases when things are not integrated. Change control processes are done from the beginning to the
end of the project as requested by any stakeholder in the project and should be recorded accordingly. All changes
are a responsibility of the project manager.
8.6
Summary
This unit looked at the importance of Project Integration Processes and emphasised that alignment to the strategy
is important to bring focus to the organisation’s overall performance. If project selection and prioritisation and their
alignment to the organisation’s portfolio are done in an integrated way, resources are effectively and efficiently
used and the organisation is likely to meet its overall goals. Project managers need to have both the technical
(hard) and socio-cultural (soft) skills. In other words, they need to know their work and they also need to network
with people at a social level. Projects are likely to have change requests to deliverables, management plans,
project organisational assets and so on. These changes must be recorded and documented in a proper way.
Changes remain the responsibility of the project manager.
Knowledge Check Questions
1. Describe why it is necessary to align the organisation’s portfolios to the
organisation’s strategy
2. Identify why it is necessary for the project manager to possess both
technical (hard) and socio-cultural (soft) skills?
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Case Study
AstraZeneca Creates a Culture of Agility and Innovation
In 2013, global biopharmaceutical leader AstraZeneca began a cultural transformation to
implement key project management values in order to become a more agile organisation.
Through the creation of a centralised project management organisation (PMO) and a
focus on customers, technical leadership, operational excellence, collaboration and
simplicity the organisation has achieved greater innovation on drug projects as well as
significant time savings.
Visit the link below to study the complete case and attempt the questions that
follow.
https://www.pmi.org/business-solutions/case-studies/astrazeneca-agility
1. In their road to agility, what initiatives did AstraZeneca undertake in phases?
2. How did AstraZeneca create an agile and efficient drug PMO and what are its
components as found in an “ideal profile” of a project manager?
Revision Questions
1.
Define Project Characteristics/Attributes.
2.
What are the key differences between a Functional and Matrix
Organisational Structure?
3.
There are differences between general management and project
management. Discuss using examples.
4.
Discuss the importance of a project life cycle to stakeholders.
5.
What are the advantages of using Project Management Tools and
Techniques in Projects?
6.
Using a concrete example, construct a Work Breakdown Structure
showing its elements.
7.
Discuss the contents of a project communication plan.
8.
Discuss using examples, the risk management cycle.
9.
There is a vast difference between management and leadership. Using
examples, evaluate this statement.
10. Identify at least three stakeholders and evaluate their roles in a project
of your own choice.
11. Why is quality important in a Project?
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Answers to Activities
Answers to Knowledge Check Questions
1. The answer to question 1 is found in section 8.2
2. The answer to question 2 is found in section 8.4
Answers to Case Study
1. In their road to agility, what initiatives did AstraZeneca undertake in phases?
In 2013, AZ launched its initiatives ‘by creating a centralised project management organisation (PMO) to build
project management capabilities; identifying key business process, which includes baselining; and
establishing reporting. In 2015, it expanded the scope to include culture of global working, enterprise project
management tools, automated portfolio views, capacity management revamp, decision making framework,
option planning capabilities, leadership, portfolio management, project and portfolio risk management, and
sharpened communication’
2. How did AstraZeneca create an agile and efficient drug PMO and what are its components as found in an
“ideal profile” of a project manager?
•
Quality Information
•
Technical Excellence
•
Champion Portfolio Reporting Excellence
•
Strong leadership
•
Capability Development
•
Guiding Decision Making
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Answers to Revision Questions
1.
2.
Projects have the following characteristics or attributes:
•
Temporary in nature (with a start and end date)
•
Non-routine
•
Can be complex
•
Limited by time, cost and resources
•
And is intended to meet or exceed the customer’s expectations
What are the key differences between a Functional and Matrix Organisational Structure? Answer is in section
1.5
3.
There are differences between general management and project management. Discuss using examples.
Answer see Section 1.6
4.
Discuss the importance of a project life cycle to stakeholders. Answer see section 3.2
5.
What are the advantages of using Project Management Tools and Techniques in Projects? Answer is found
in section 2.5
6.
Using a concrete example, construct a Work Breakdown Structure showing its elements. Answer is in section
4.3 of the module
7.
Discuss the contents of a project communication plan. Answer is in section 5.3
8.
Discuss using examples, the risk management cycle. Answer is in section 5.6
9.
There is a vast difference between management and leadership. Using examples, evaluate this statement.
Answer is in section 6.3
10. Identify at least three stakeholders and evaluate their roles in a project of your own choice. Answer is in
section 6.6
11. Why is quality important in a Project? Answer is in section 7.2
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References
•
Burke, R. (2013). Project Management Techniques. College Edition. Hampshire: Burke Publishing
•
Burke, R.J. and Barron, S. (2007). Project Management Leadership. Hampshire: Burke Publishing
•
Clements, J.P. and Gido, J. (2018). Successful Project Management, 7th Edition, Cengage Learning
•
Heizer, J. and Render, B. (2010). “Project Management” in Operations Management. 10th Edition. New
Jersey: Pearson Education Inc
•
Larson, E.W. and Gray, C.F. (2014). Project Management: The Management Process, Sixth Edition,
McGraw-Hill International, ISBN 978-1-259-01070-5
•
Mtapuri, O. Nkosi, N. and Smorfitt, R. (2008). Pathways to Project Management. Johannesburg,
Heinemann Publishers
•
Oosthuizen and Venter (Eds) (2012). Project Management in Perspective, Third Edition, Oxford
University Press, ISBN 978 0 19 599314 1
•
Pinto, J.K. (2016). Project Management: Achieving Competitive Advantage, 4th Edition, Edinburgh:
Pearson Education Limited
•
PMBOK (2013). A Guide to the Project Management Body of Knowledge. Project Management Institute:
Newtown Square, Pennsylvania
•
PMI (2004). A Guide to the Project Management Body of Knowledge (PMBOK Guide). 3rd Edition.
Pennsylvania: Project Management Institute
•
Project Management Skills (n.d). Project Charter. https://projectmanagementskills.info/project-charter/
•
Soderlund, J. (2004). Building Theories of Project Management: Past Research, Questions for the
future, International Journal of Project Management, Vol. 22: pp. 183-191
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Bibliography
•
Burke, R. (2013). Project Management Techniques. College Edition. Hampshire: Burke Publishing
•
Burke, R.J. and Barron, S. (2007). Project Management Leadership. Hampshire: Burke Publishing
•
Clements, J.P. and Gido, J. (2018). Successful Project Management, 7th Edition, Cengage Learning
•
Heizer, J. and Render, B. (2010). “Project Management” in Operations Management. 10th Edition. New
Jersey: Pearson Education Inc
•
Larson, E.W. and Gray, C.F. (2014). Project Management: The Management Process, Sixth Edition,
McGraw-Hill International, ISBN 978-1-259-01070-5
•
Mtapuri, O. Nkosi, N. and Smorfitt, R. (2008). Pathways to Project Management. Johannesburg,
Heinemann Publishers
•
Oosthuizen and Venter (Eds) (2012). Project Management in Perspective, Third Edition, Oxford
University Press, ISBN 978 0 19 599314 1
•
Pinto, J.K. (2016). Project Management: Achieving Competitive Advantage, 4th Edition, Edinburgh:
Pearson Education Limited
•
PMBOK (2013). A Guide to the Project Management Body of Knowledge. Project Management Institute:
Newtown Square, Pennsylvania
•
120
PMI (2004). A Guide to the Project Management Body of Knowledge (PMBOK Guide). 3rd Edition.
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•
Pennsylvania: Project Management Institute
•
Project Management Skills (n.d). Project Charter. https://projectmanagementskills.info/project-charter/
•
Soderlund, J. (2004). Building Theories of Project Management: Past Research, Questions for the
future, International Journal of Project Management, Vol. 22: pp. 183-191
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